A recent decision of the Iowa Court of Appeals illustrates the perils of reliance upon industry rules of thumb to value a business in matrimonial litigation. In Marriage of Hagar (11/24/2010), husband and wife purchased a dry cleaning business from a trust established by husband’s parents as part of a business succession plan. Husband and wife agreed to a $300,000 purchase price that was determined by the companies’ accountant. The trust […]
Tag: Business Valuation
A recent post on BVLaw (culled from the materials for the BVR Summit on Business Valuation in Divorce, going on now in Chicago) reminds us that pre-trial discovery and preparation are essential tasks in divorce litigation which must be conducted by the parties, with the assistances of their lawyers and experts, not the court: Speaking at this morning’s BVR Divorce Summit, Judge Thomas Zampino gave some excellent advice for matrimonial […]
Last year I had the privilege of attending the BVR/Morningstar Summit on Best Practices in Business Valuation in Divorce, which will be held this month in Chicago. Unfortunately I have to miss it this year as I will be visiting my new niece in San Diego. They will be discussing the latest developments in business valuation and complex financial issues in divorce, including the following summary of a double-dipping decision […]
This decision contains a good explanation of the reasons why “fair value” is not necessarily appropriate to divorce cases.