Marital dissolutions often present challenging issues for business appraisers. However, some engagements are more complex than others. This presentation will address valuation and financial complexities that arise in marital dissolution cases involving hedge funds, private equity firms, start-up companies and other unique businesses. Intertwined in many complex divorce cases are issues related to reasonable compensation for the efforts of the business-owning spouse versus a return on invested capital as well as tracing multi-year capital movements in states that provide for separate and community assets and liabilities. If that weren’t enough complexity, add an international dimension, say in Canada, France, China or India, and the complexity can increase exponentially. This presentation will provide examples and anecdotes of some of these complexities and some tips on how to handle them when encountered.
Learning Objectives
- Upon completion of this course, you'll be able to:
- Identify the unique valuation challenges presented by marital dissolution cases involving hedge funds, private equity firms, start-ups, and international business interests.
- Examine the financial considerations related to distinguishing reasonable compensation from return on capital in complex divorce valuations.
- Evaluate techniques for tracing capital movements and addressing asset classification in jurisdictions with community versus separate property laws, including cross-border implications.
Major Topics
- Valuation challenges presented by marital dissolution cases involving hedge funds, private equity firms, start-ups, and international business interests.
- Financial considerations related to distinguishing reasonable compensation from return on capital in complex divorce valuations.
- Techniques for tracing capital movements and addressing asset classification in jurisdictions with community versus separate property laws, including cross-border implications.
