KW Economics prepares business valuation for divorce and marital dissolution matters venued in Montana: the income, valuation, and tracing questions the matter raises, the records that answer them, and a presentation built to the way Montana courts decide them. Either party.
In a divorce the business valuation is usually the largest and most contested figure in the marital estate, and the valuation date, the treatment of personal goodwill, and the normalization of owner compensation move it materially. The economist normalizes the financial statements for owner compensation, personal expenses, and non-recurring items, values the business under the standard the domestic relations framework applies, and addresses personal and enterprise goodwill where the framework requires the distinction. The same normalized statements support the income determination for support, so the two analyses reconcile.
Valuation of closely held businesses and ownership interests for shareholder and partnership disputes, divorce, estate and gift matters, and buy-sell disagreements. The work applies the income, market, and asset approaches under the standard of value that governs the matter, addresses discounts for lack of control and marketability where they apply, and documents every input so the conclusion can be tested on cross-examination.
The business valuation is usually the largest and most contested figure in the marital estate, and the valuation date, the standard of value, the treatment of personal and enterprise goodwill, and the normalization of owner compensation each move it materially. Income available for support for a self-employed spouse can differ substantially from the reported figure once personal expenses paid by the business and cash flow retained in it are considered, and the owner compensation adjustment has to be carried consistently into the valuation and the income determination, because the same stream of earnings appears in both. Tracing outcomes depend on the completeness of the account records and on how the governing framework, whether equitable distribution or community property, treats commingled funds and the appreciation of separate assets during the marriage.
Montana courts apply a reliability inquiry to novel scientific evidence and otherwise ask whether the economist is qualified by training and experience and whether the opinion will help the fact finder, leaving the weight of the testimony to cross-examination. A financial analysis for a divorce meets that inquiry by listing each normalization adjustment, valuation input, and tracing step with the record behind it.
Highest court: Montana Supreme Court. Court system: courts.mt.gov.
Federal venues: District of Montana.
Whether Montana divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.
We issue the final report and provide deposition and trial testimony and critique of opposing valuation reports.
In a divorce the business valuation is usually the largest and most contested figure in the marital estate, and the valuation date, the treatment of personal goodwill, and the normalization of owner compensation move it materially. The economist normalizes the financial statements for owner compensation, personal expenses, and non-recurring items, values the business under the standard the domestic relations framework applies, and addresses personal and enterprise goodwill where the framework requires the distinction. The same normalized statements support the income determination for support, so the two analyses reconcile.
Montana courts apply a reliability inquiry to novel scientific evidence and otherwise ask whether the economist is qualified by training and experience and whether the opinion will help the fact finder, leaving the weight of the testimony to cross-examination. A financial analysis for a divorce meets that inquiry by listing each normalization adjustment, valuation input, and tracing step with the record behind it. Divorce and Marital Dissolution cases venued in Montana are heard in the District Court (General jurisdiction; one district in each of 56 counties), with final appeals to the Montana Supreme Court. Matters within federal jurisdiction proceed in the District of Montana.
Whether Montana divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. The report lists each normalization adjustment, valuation input, and tracing step with its source and shows the result under each spouse's position, so counsel can apply the Montana rules to a documented figure.
Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.