Appreciation Case Highlights Contribution by Nonowner Spouse
Increase in value of owner’s minority interests in companies was due to owner’s efforts, which were “facilitated” by nonowner’s work in home; appreciation was active and marital property; no error in awarding nonowner half of profits from sale of assets.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
McNee v. McNee
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.
Different Theories Justify Classifying Loan to Business as Marital Asset
Trial court did not err in classifying owner-spouse’s personal loan to his business during marriage as a marital asset, appeals court finds; loan could be seen as an increase in value of owner’s business or a debt owed to parties, appeals court says.
WA court’s goodwill analysis looks a lot like appreciation analysis
A recent Washington state divorce case included a noteworthy discussion of goodwill where the owner spouse’s business arguably was separate property. Divorce experts will notice that the court’s goodwill analysis has much in common with an appreciation analysis.
Stephens v. Stephens
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
Nebraska Supreme Court Adopts Majority View on Appreciation
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
In re Marriage of Vandal
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Appreciation Case Highlights Contribution by Nonowner Spouse
Increase in value of owner’s minority interests in companies was due to owner’s efforts, which were “facilitated” by nonowner’s work in home; appreciation was active and marital property; no error in awarding nonowner half of profits from sale of assets.
Allison v. Allison
Increase in value of owner’s minority interests in companies was due to owner’s efforts, which were “facilitated” by nonowner’s work in home; appreciation was active and marital property; no error in awarding nonowner half of profits from sale of assets.
Active-passive categorization skews appreciation analysis, court finds
Valuators may think they know all there’s to know about quantifying the appreciation of nonmarital property by using the active versus passive framework. Think again. A recent Florida divorce case illustrates that the premature categorization of assets may lead to an improper valuation.
Divided Court Addresses Issue of Appreciation of Gifted Property
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
Court Digs Through Appreciation Issues in Complex Divorce Case
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Court Upholds Inclusion of Premarital Value in Property Distribution
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Kminek-Nierenberg v. Kenneth Nierenberg
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Court Digs Through Appreciation Issues in Complex Divorce Case
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Divided Court Addresses Issue of Appreciation of Gifted Property
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
In re Marriage of Kerkhoff
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
Court Upholds Inclusion of Premarital Value in Property Distribution
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Code & Code
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Mann v. Mann
In appreciation of value case, court agrees with wife’s expert that calculation of marital portion of wife’s interest in family business requires quantification of personal goodwill attributable to wife based on value of noncompete to potential buyer in arm’s-length transaction.
Court Adopts Appreciation Analysis That Places ‘Specific Dollar Value’ on Goodwill
In appreciation of value case, court agrees with wife’s expert that calculation of marital portion of wife’s interest in family business requires quantification of personal goodwill attributable to wife based on value of noncompete to potential buyer in arm’s-length transaction.
In Controversial Move, High Court Strikes Active Appreciation Rule
State high court says plain language of property distribution statute does not permit reclassification of nonmarital property as marital property under active appreciation doctrine; court invalidates doctrine and overrules body of case law applying it.
Lay Testimony About Offer to Buy Represents Admissible Valuation Evidence
Appeals court says nonexpert testimony on a real-world offer to buy owner-spouse’s company was relevant and, therefore, admissible because it provided valuation evidence based on market approach; court remands for rehearing on all valuation testimony.