Divorce court limits personal goodwill value to non-compete
In the third case in as many months to decide the value of a dental practice in divorce (see BVWire # 96-2 and BVWire #96-4), the Ohio Court of Appeals just considered the effect of the sale of the practice during the proceedings. For reasons the court does not detail, the husband sold his solo [...]
Key job of expert is to educate you on subjective elements in opponents’ valuation reports
“Measuring active and passive appreciation in separate property remains a complicated issue in divorce matters,” Stacy Collins (Financial Research Associates) told the audience last week at the BVR/Morningstar 3rd Annual Summit on Business Valuation in Divorce. That’s why “to be effective as an expert make sure you support your subjective conclusions,” added Mark Sobel (Greenbaum [...]
Patient records are ‘professional goodwill,’ despite non-compete
Remember our recent report on McReath v. McReath, in which we said the Wisconsin Court of Appeals may have just revised the majority rule on the disposition of private practice goodwill to say that all salable goodwill is a marital asset, subject to division, whether corporate or professional. Further, a non-competition agreement can serve as [...]
Wisconsin court announces new standard on goodwill value
The current majority rule among U.S. jurisdictions holds that the corporate component of the goodwill value of a private professional practice is a divisible marital asset, but the professional component is not. Wisconsin was among the majority until McReath v. McReath, WL 2943198 (Wis. App.)(July 29, 2010), which may have just revised the rule: All [...]
The judge is the divider, not the identifier or valuer
Speaking at this morning’s BVR Divorce Summit, Judge Thomas Zampino gave some excellent advice for matrimonial lawyers. ”I’m not going to go out and find all the assets that are hidden under the bed. And, I’m not going to determine what they’re worth. You don’t want me doing that. But, my job is [...]
New AHLA/BVR guide helps attorneys navigate healthcare valuation litigation
Understanding the complex relationships, evolving legislative landscape (including the Healthcare Reform Act) and other factors influencing healthcare practices and facilities is critical when faced with the challenge of defending or impeaching a tricky healthcare valuation. The American Health Lawyers Association (AHLA) and BVR are collaborating on a newly updated and soon to be published legal research guide that [...]
California considers the ‘Double Dip’ in divorce—and declines to make new law
Here’s an updated digest from BVLaw Alert on a California matrimonial case that continues to cause discussion on the issue of “double dipping.” (The court’s opinion is available here.) In re Marriage of Blazer, (August 25, 2009) (partially unpublished) The California Court of Appeal considered two issues of first impression: whether an owner’s capital account [...]
September Business Valuation Summits Offer Ohio Practitioners Robust CLE Opportunity
Good news, Ohio friends. Our upcoming Chicago Summits covering Valuation of Intellectual Property and Business Valuation in Divorce, have been approved for 11 Ohio CLE credits. Event details are below. We look forward to seeing you in Chicago next month! BVR/Morningstar Summit on Best Practices in Business Valuation in Divorce September 13-14, 2010 – The Auditorium [...]
When is professional goodwill a personal asset?
In 1980, Larry Howard, DDS, incorporated his practice, becoming the sole shareholder, officer, and director. He also entered a covenant not to compete (in effect, protecting his company from himself). Whatever his objective, when he retired in 2002 and sold his practice to another “corporate” dentist, the parties’ purchase agreement allocated nearly $550,000 to Dr. [...]
Are more divorce cases being filed again?
At least one marital think tank has researched a wide variety of regions—from Wisconsin to Wales—over a century of data, and found, “almost without exception” that “both marriage and divorce rates tend to fall when the economy heads south and then rise when good times return.” (Given the rise of women’s economic independence and a [...]
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