Taking it off the Table: Measuring Passive Appreciation of Assets in Divorce

more+
less-

Matrimonial attorneys representing business owners frequently need to clearly separate the total growth in value of the business during the marriage between growth attributed to efforts of spouses (active) and to external factors and market forces (passive).

Empirical analysis presented in this paper indicates that the proportion of performance attributable to external factors lies between 40% and 96% for the sample of industries analyzed.

The proposed regression model provides a clear and concise approach to determining the passive and active appreciation. The results are statistically robust.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Family Law Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ashok Abbott, West Virginia University | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »