Yearly Archives: 2007

Are Capital Gains Considered “Income” under the Child Support Guidelines?

November 13, 2007 | Child Support, Legal Perspective, Tax Issues

Icon for author Brian Vertz Brian Vertz

The statutory and rules definitions of “income,” as provided by 23 Pa.C.S. § 4302 and Pa.R.C.P. 1910.16-2(a) include “gains derived from dealings in property” (§ 4302) or “net income from business or dealings in property” (Pa.R.C.P. 1910.16-2). Neither the statute nor the rules specifically mention “capital gains.” Under the Internal Revenue Code, a “capital gain” is the gain realized upon the sale or exchange of a species of property known […]

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Active vs. Passive Appreciation

October 29, 2007 | Business Valuation, Court Decisions, Divorce, Legal Perspective

Icon for author Brian Vertz Brian Vertz

Minnesota’s intermediate court recently clarified the distinction between active appreciation in the value of premarital property, which is considered marital property under Minnesota law, and passive appreciation, which is separate property, in In Re Marriage of Ellingson (2007). The subject business was a custom kitchen cabinetry manufacturer and installer, which the husband began prior to the parties’ marriage. Under relevant case law in Minnesota, active appreciation is defined as increase […]

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No Silver Lining for Divorcing Spouse

October 28, 2007 | Income Calculations, Legal Perspective

Icon for author Brian Vertz Brian Vertz

In Silver v. Silver, a 2007 decision of the Ohio Court of Appeals, Second Division, the court discussed a business owner’s income for support purposes in conjunction with a business valuation for equitable distribution purposes. The husband was the sole shareholder of a marketing business, which was marital property subject to equitable distribution. Both spouses offered expert reports and testimony as to income and business valuation. While husband’s expert averaged […]

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Valuation of Private Investigation Firm

October 28, 2007 | Business Valuation, Legal Perspective

Icon for author Brian Vertz Brian Vertz

The Pennsylvania Superior Court’s 2007 decision in Dalrymple v. Kilishekis relatively unremarkable from a valuation perspective. The subject business was a private investigation firm owned by the husband, which was the chief marital asset. Apparently its assets, which were valued at $45,000 as of the date of separation, were mostly or entirely dissipated by the time of trial. Since there were few or no assets left to distribute, the trial […]

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Valuation of Sports Franchises

September 14, 2007 | Business Valuation, Legal Perspective

Icon for author Brian Vertz Brian Vertz

According to the Pittsburgh Business Times: The Dallas Cowboys are the NFL’s most valuable franchise, according to Forbes magazine’s annual ranking of NFL teams. Forbes values the Cowboys at $1.5 billion, a 28 percent increase from the previous year. The Washington Redskins, who held the top spot for the past seven years, fell to No. 2, with only a 3 percent increase in value to $1.47 billion. The Cowboys overtook […]

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