Yearly Archives: 2006

Life Insurance: Funding Vehicle for Buy-Sell or Non-Operating Asset?

December 05, 2006 | Blog, Business Valuation

Icon for author Brian Vertz Brian Vertz

Mercer Capital’s newsletter Value Matters recently published an article which points out a dilemma faced by valuation professionals in appraising businesses that have taken out life insurance to fund a buy-sell agreement. While the life insurance proceeds may be intended to satisfy the company’s liability to purchase the deceased shareholder’s stock, they might be viewed alternatively as a non-operating asset. Mercer suggests two options: (1) The life insurance proceeds may […]

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PLR Clarifies Taxes on Stock Options in Divorce

November 26, 2006 | Blog, Tax Issues

Icon for author Brian Vertz Brian Vertz

An IRS Private Letter Ruling (No. 200646003) clarifies the law with respect to the tax treatment of stock options that are distributed by constructive trust in divorce to the non-employee spouse. This PLR confirms that the non-employee spouse who directs the exercise of options in-the-money is responsible for the federal income tax and should receive a credit for the income tax withheld by the employer. The important part of this […]

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Lawyer Beware!

November 21, 2006 | Blog, Family Law News

Icon for author Brian Vertz Brian Vertz

Short week: happy Thanksgiving! FamilyLaw Prof Blog reports on a New York State case in which a divorce lawyer was held liable for the client’s loss resulting from a delay in transferring retirement funds. An important reminder to us all!

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