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 [...]
A trial court uses parts of three experts’ testimony to come up with its own restaurant valuation
Talk about competing messages! A couple owned a 60% interest in a successful Ohio restaurant. During their divorce, the wife’s expert valued the restaurant at $650,893. Amazingly, the husband’s first expert used a “blended” approach (percentage of average cash flow and gross sales) to find the restaurant was worth $691,000—or nearly $40,000 more than the [...]
Lack of “three approaches” gets experienced appraiser “Dauberted”
First, the federal district court found the defendants breached a twenty-year lease for a nursing home facility and owed the plaintiff/landlord over $370,000 in back rent. The landlord also claimed over $10 million in lost future payments, and presented a credentialed BV expert—the director of a valuation/litigation practice with more than 500 past valuations—to provide [...]
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