District Court Affirms Tax Court’s Decision That Deferred Payments to Spouse Are Not Deductible Alimony Payments
The district court in this appeal from the Tax Court affirmed the Tax Court’s decision that deferred payments the husband made to the wife were not deductible alimony payments and thus not taxable to the wife.
Redleaf v. Comm’r
The district court in this appeal from the Tax Court affirmed the Tax Court’s decision that deferred payments the husband made to the wife were not deductible alimony payments and thus not taxable to the wife.
Hollis v. Hollis
One of the main issues in this appeal was how to classify the husband’s “book of business,” i.e., his client relationships, assets under management, and related income. The husband was a financial advisor for UBS. The wife contended the book of business had value that constituted a marital asset. The husband pointed out that UBS now took the position that a financial advisor who left the company cannot take any information with him or her. The court also noted that “deferred cash agreements” were actually bonuses that were marital assets. The appellate court affirmed the trial court’s decision to exclude the book of business from marital assets. The court also affirmed the trial court decision on payment of alimony to the wife “in futuro.”
The Tennessee Appeals Court Affirms the Trial Court’s Decision to Exclude From the Marital Estate Financial Advisor the Husband’s ‘Book of Business’
One of the main issues in this appeal was how to classify the husband’s “book of business,” i.e., his client relationships, assets under management, and related income. The husband was a financial advisor for UBS. The wife contended the book of business had value that constituted a marital asset. The husband pointed out that UBS now took the position that a financial advisor who left the company cannot take any information with him or her. The court also noted that “deferred cash agreements” were actually bonuses that were marital assets. The appellate court affirmed the trial court’s decision to exclude the book of business from marital assets. The court also affirmed the trial court decision on payment of alimony to the wife “in futuro.”
King v. King
In this Maryland divorce case, the Court of Special Appeals affirmed the trial court on all appealed issues including marital property determinations; monetary award to the wife; determination of incomes of the husband and wife; and determinations of alimony, child support, and related expenses. The Court of Special Appeals also affirmed that the husband’s business was not a gift and was marital property, and it determined the value of the business as the wife’s expert presented. Both parties were forensic accountants.
Maryland Appellate Court Affirms Trial Court on Value of Husband’s Business as Well as Several Other Divorce-Related Issues
In this Maryland divorce case, the Court of Special Appeals affirmed the trial court on all appealed issues including marital property determinations; monetary award to the wife; determination of incomes of the husband and wife; and determinations of alimony, child support, and related expenses. The Court of Special Appeals also affirmed that the husband’s business was not a gift and was marital property, and it determined the value of the business as the wife’s expert presented. Both parties were forensic accountants.
Connecticut Supreme Court clarifies double-counting rule
In a recent decision, the Connecticut Supreme Court clarified this jurisdiction approach to double counting (or double dipping).
Oudheusden v. Oudheusden (II)
In this divorce case, the Connecticut Supreme Court, overturning the appellate court, clarifies that awarding the nonowner spouse part of the value of the owner spouse’s businesses and basing alimony on income generated from the businesses is not impermissible double counting (double dipping).
Connecticut Supreme Court Clarifies Double Counting Rule in Divorce Cases Involving Valuation of a Business and Determination of Alimony
In this divorce case, the Connecticut Supreme Court, overturning the appellate court, clarifies that awarding the nonowner spouse part of the value of the owner spouse’s businesses and basing alimony on income generated from the businesses is not impermissible double counting (double dipping).
Fingertip guides to valuation cases in new BVR compendium guides
BVR’s valuation and case law compendium guides contain a very helpful feature: a handy summary table of hundreds of cases (by jurisdiction) that gives you the case name, date, specific court, and the main valuation issue in the case.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends December 2020
A monthly roundup of key developments of interest to business valuation experts.
Parties’ agreement complicates spousal support calculation in S corp context
Instead of facilitating a resolution, a separation agreement between the divorcing spouses led to a protracted lawsuit.
Assume every valuation will be challenged
“As appraisers, our reputation is our single most valuable asset ...
Company or Damage Valuation in a Mediation Context
The number of online mediations has soared due to the pandemic. This article outlines the standard phases of a valuator-assisted mediation and the concept of the best alternative to a negotiated agreement (BATNA) and includes some real-world case studies.
BVU News and Trends November 2020
A monthly roundup of key developments of interest to business valuation experts.
Marshall v. Marshall (II)
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
Courts Agree Reasonable Compensation Is Sound Method for Calculating Spousal Support in S Corp Context
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
New edition released of the BV in Divorce Compendium
The most current summary and analysis of U.S. legal decisions involving business valuation and divorce is in the just-released fifth edition of BVR’s Business Valuation in Divorce Case Law Compendium.
Tips on how to help settle a divorce during COVID-19
How do you resolve a divorce case during COVID-19, when many businesses in all kinds of industries are coping with significant losses and continuing uncertainty over future performance?
Updated Finance and Accounting for Lawyers now available
An introductory text for attorneys working with accounting and the business valuation world has been revised.
What family law practitioners need to know about COVID-19-related legislation
In a recent webinar, hosted by the American Academy of Matrimonial Lawyers (AAML), high-caliber presenters examined provisions in the mammoth COVID-19 federal legislation that are of particular significance to family law practitioners (attorneys and business valuators).
Oudheusden v. Oudheusden (I)
Appellate court remands because of trial court’s impermissible double dipping, where trial court awarded wife half of the fair market value of husband’s two solely owned businesses, which represented husband’s sole income stream, and based spousal support on annual income generated by businesses.
Connecticut Appellate Court Remands Because of Impermissible Double Dipping
Appellate court remands because of trial court’s impermissible double dipping, where trial court awarded wife half of the fair market value of husband’s two solely owned businesses, which represented husband’s sole income stream, and based spousal support on annual income generated by businesses.
The Secrets to Expert Testimony That Engages and Persuades a Court
Some techniques to help prevent experts from imploding during fierce cross-examination.