Wilson v. Wilson: A trial court valuing a closely held business in a divorce is not to determine the fair market value of the entity but its fair value.
By Laura Morgan, Family Law Consultant
Valuation of a company based on liquidation approach in order to determine the value of wife’s stock was not warranted; because the company was not for sale and was not being liquidated at the time of trial, using the liquidation approach and applying the fast sale discounts resulted in a lower valuation than one would otherwise obtain.
Reprint with permission.
Laura Morgan is a Family Law Consultant. Laura is available for consultation, brief writing and research on family law issues throughout the country. She can be reached through her Web site.
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