Court values law firm goodwill (and their contingency cases)
Weinberg v. Dickson-Weinberg, 2009 WL 3294784 (Hawai’I App.)(Oct. 14, 2009) Has the majority rule on the disposition of goodwill in divorce resulted in “gross under-valuations of countless successful businesses” simply because their “fortunate owners” happened to be professionals? Does the majority rule properly hold that a law firm professional’s pending contingency-fee cases are marital property [...]
Alabama adopts fair value in divorce, under broader equitable standard
Grelier v. Grelier, 2009 WL 5149267 (Ala. Civ. App.)(Dec. 30, 2009) In what could serve as precedent for states that now apply the broad, equitable standard for valuing businesses in divorce, the Alabama Court of Appeals considered a case in which the husband owned a minority (25%) interest in several closely held, commercial property development [...]
Two new studies support higher DLOM to protect taxpayer clients
Perhaps nothing in business valuation is more controversial than the discount for lack of marketability (DLOM).This one adjustment can have a sizable impact on clients’ tax obligations. So, naturally, one question frequently lingers in attorneys’ minds at the end of estate-planning engagements: Did the business appraiser select an appropriate discount? . . . We offer [...]
Another big taxpayer victory: Federal court accepts appraiser’s 35% combined discounts for 94% family LP interest
The Murphy Oil Corp. grew from a small, family owned business into a multinational conglomerate, with over $2 billion in market cap. During the 1990s, the CEO and son of the founder set out to preserve his holdings and his investment philosophy for the benefit of his children. He formed a family limited partnership (FLP [...]
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