Litigation & Dispute Resolution

May 13, 2015

Statutory Fair Value

Statutory “fair value” is the standard of value for valuation in the dissenters’ rights and shareholder oppression statutes of the majority of states. Disagreements over the applicability (or not) of certain valuation premiums or discounts provide the source of significant differences of opinion between counsel for dissenting shareholders and, unfortunately, between business appraisers. However, in this whitepaper on statutory fair value, we hope to outline sufficient valuation and finance theory so we can begin to examine cases, i.e., judicial interpretations of what fair value means. With the proper background, we will be able to understand and to interpret what the courts have said in the context of valuation theory.

This e-book consists of a series of posts originally published on the blog Valuation Speak between February 2011 and January 2012. 

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A Financial Perspective and Overview of Marital vs. Separate Property in Divorce-Part 3
A Financial Perspective and Overview of Marital vs. Separate Property in Divorce

Part 3: Illustrative Examples

Part 3 applies these concepts through two examples which are hypothetical and simplified to illustrate the financial analysis that an expert may perform. The examples do not determine whether an asset or change in value is marital or separate. The applicable law, relevant dates, and facts of each matter govern counsel in that determination.
A Financial Perspective and Overview of Marital vs. Separate Property in Divorce-Part 2
A Financial Perspective and Overview of Marital vs. Separate Property in Divorce

Part 2: Valuation, Financial, and Forensic Considerations

In Part 1, we discussed the general distinction between marital and separate property. Part 2 takes a closer look at the valuation, financial, and forensic issues that can complicate the analysis of marital vs. separate property: tracing assets over time, evaluating commingling or potential transmutation, identifying liabilities, and analyzing changes in value. The relevance and treatment of these issues vary depending on jurisdiction and the applicable legal framework.
A Financial Perspective and Overview of Marital vs. Separate Property in Divorce-Part 1
A Financial Perspective and Overview of Marital vs. Separate Property in Divorce

Part 1: Property Classification

When attorneys think about financial experts, they often think about reports, depositions, and trial testimony. Yet many of the valuable contributions a financial expert can make occur much earlier in the case. In matters involving valuation, income determination, or forensic accounting, earlier expert involvement may help counsel identify key financial issues, assist in discovery, evaluate settlement positions, among others.

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