Interesting Articles about Divorce

The following are recommended articles that we have published in recent newsletters. Each discusses important issues in divorce.

A Professional Valuation Is Key

As a business owner, you already understand the importance of business valuations. Knowing proper values for your business assets smoothes transitions, sales and liquidations.

An Rx for Valuing Physician Practice Goodwill in Divorce

This fictitious example illustrates the process of valuing medical practices, including how to measure goodwill and how to split it into its component parts.

Appraisers Can Help Divorcing Parties in Many Ways

It’s not easy to keep all the parties happy in a marital dissolution case. But from the beginning to the end of the divorce process, valuation professionals can help handle financial issues in a fair, expedient manner.

Determining Replacement Compensation

One of the most frequently contested financial issues is “reasonable compensation.” Here is a brief guide on how to estimate reasonable (or replacement) compensation.

Double Dipping More than Poor Table Manners in Divorce

When divorcing spouses own a business, that business is often the biggest — and most contentious — marital asset. One ongoing debate in divorce courts is: How do you balance spousal support payments with distributions of private business interests?

Five Common Valuation Myths

Business valuation is a complex financial discipline. Much of its lingo, logic and underlying mathematics can be incomprehensible to those outside the profession, giving rise to confusion and misconceptions. So let’s set the record straight concerning five common valuation myths.

How Do Innocent Spouses Spell Relief?

Divorcing spouses frequently engage valuation experts to help divide their assets, particularly when the marital estate includes a private business interest. Not only does closely held stock complicate divorce proceedings, but it also provides opportunities for owners to underreport income or exaggerate expenses.

Intangibles Often Play a Key Role in Marital Assets

Determining equitable distributions of marital assets in a divorce can be challenging — especially when the estate includes an interest in a privately held business.

Reconcilable Differences; Seeking Collaborative Divorce

Traditional divorce proceedings pit husband against wife. But when each spouse plays to win, both sides lose emotionally and financially. Collaborative arrangements seek win-win solutions that minimize expert witness fees and allow creative, customized asset splits.

Special Considerations in Divorce Valuations

In divorce engagements, the valuation issues can be somewhat tricky and often vary depending on relevant state and case law.

Take Nothing for Granted in Divorce Cases

Out-of-court settlements preclude courtroom surprises. But, if court is unavoidable, it’s imperative that the parties review relevant state statutes and case law — in and out of their jurisdiction — to prevent potential hang-ups.

Watch Out for Financial Misstatement

A valuation is only as accurate as its underlying financial data. Some unscrupulous business owners employ creative accounting techniques to hide assets or lower profits.

What Drives the Value of Professional Practices?

Business appraisers must switch gears when valuing professional practices, such as law, accounting, actuarial or engineering firms.

What to Look for in a Rebuttal Report

But with little published guidance on this unique type of report, many clients don’t know what to expect from their experts’ rebuttal reports. Let’s take a closer look at rebuttal reports, what they consist of and how experts use them to convey valuation opinions for litigation purposes.

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