by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Lunn v. Lunn, 2015 Tenn. App. LEXIS 515 (June 29, 2015) Tennessee divorce courts seem divided on how to treat the goodwill of a business, specifically on the question of whether to adopt a distinction between enterprise and personal goodwill. The current rule seems to...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Rabe v. Rabe, 2015 Ky. App. Unpub. LEXIS 379 (May 29, 2015) An opinion in a divorce case from the Kentucky Court of Appeals, although unpublished, merits attention because it shows the court ruling on the nature of goodwill in a business valuation based merely on the...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Schickner v. Schickner, 2015 Ariz. App. LEXIS 48 (April 16, 2015) In the context of divorce, may a court apply a minority discount when valuing a minority interest in a business to determine the nonowner spouse’s fair share? This was the primary issue the Arizona...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Valuation experts often criticize the Excess Earnings Method, calling it ambiguous, over-simplified or outdated. But it’s still used in some jurisdictions as a way to value small businesses and professional practices, especially in a divorce setting. The method...
by Royer Advisors | Dec 11, 2024 | Divorce Litigation, Financial Planning, Valuations
During a divorce, when either spouse owns a private business interest, the divorce settlement is only as reasonable as the value of the business and the compensation of its owners. Replacement compensation can become a controversial issue, especially when the spouse...
by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations
Reedy-Huffman v. Huffman, 2015 Alas. LEXIS 56 (May 20, 2015) Hire a valuation expert. That’s the message the Alaska appeals court sent in a ruling involving a professional practice caught up in a divorce. The opinion also includes a good summary of the state’s...
