Complex Financial Issues

Can Divorced Exes Remain Partners in Business?

by Brian Vertz on April 24, 2014

Business owners in Pennsylvania who are seeking a divorce may be encouraged to hear that it is possible to remain business partners even while dissolving the marital relationship. According to U.S. Census Bureau statistics, 3.7 million small businesses are owned by married couples. Many of them face divorce each year, placing their businesses at risk […]

Suspicion of Fraud Will Not Defeat Divorce Settlement Agreement

April 14, 2014 Complex Financial Issues

Couples who have settled their divorce in Pennsylvania may recall that divorce settlement agreements are final and enforceable only if there has been a full and fair disclosure of marital assets. A recent decision of the Pennsylvania Superior Court tests this principle in a case where one spouse suspected that her husband may have been […]

Read the full article →

Lopsided Equitable Distribution in Favor of Business Owner Vacated

November 5, 2013 Complex Financial Issues

Perhaps the recent non-precedential Superior Court opinion in Rice illustrates the hazard that is inherent when a business owner gives half of the stock and pays an equal salary to his spouse who does not actually work in the business. The Fayette County trial court in Rice v. Rice, No. 1125 WDA 2012 (October 31, […]

Read the full article →

In-kind Distribution of Stock Disfavored by Divorce Court

September 8, 2013 Business Valuation

A decision announced recently by the Supreme Court of Rhode Island, McCulloch v. McCulloch, 69 A.3d 810, illustrates why buyouts are generally favored over in-kind distributions of stock when dividing the value of family businesses in equitable distribution proceedings. The trial court in McCulloch, faced with uncertain valuations of the businesses from both sides and […]

Read the full article →

Husband’s Divorce Settlement Forecloses Action by His Corporation Against Wife

August 18, 2013 Complex Financial Issues

In Habjan v. Habjan, ___ A.2d ___ (Pa.Super.2013), the Superior Court was confronted with a question of whether to “pierce the corporate veil” by holding Husband responsible for a lawsuit initiated by his business corporation against Wife, thereby abrogating the release that Husband gave her in his marital settlement agreement. Husband and Wife were each […]

Read the full article →

Concealed Oil and Gas Rights Are Marital Property Subject to Equitable Distribution

June 20, 2013 Complex Financial Issues

A recent unpublished decision of the Superior Court of Pennsylvania confirms that oil and gas rights, not disclosed in the discovery or inventories of the divorcing spouses, nevertheless must be considered when dividing marital property in equitable distribution. In Welsh v. Welsh, No. 237 WDA 2012 (June 19, 2013), the Superior Court affirmed the decision […]

Read the full article →

Court Will not Rewrite Settlement Agreement to Prevent Future Disputes

March 25, 2013 Complex Financial Issues

In an unpublished decision, the Superior Court recently declined an invitation to rewrite a marital settlement agreement in order to avoid the possibility of future disputes over the use of funds committed to a children’s trust. In Hvidzak v. Hvidzak, No. 37 WDA 2012 (February 22, 2013), the Father and Mother entered into a marital […]

Read the full article →

Double Dip and Goodwill Considered by Wisconsin Supreme Court

August 15, 2011 Alimony

Last month the Wisconsin Supreme Court weighed in on two issues that are important to family lawyers and their clients who operate professional practices like physicians, lawyers, dentists and accountants. In Marriage of McReath, the Wisconsin Supreme Court ruled that “saleable” goodwill would be considered marital property, in a case where a dentist argued that […]

Read the full article →

Blazer: Double Dip Still Moribund in California

September 8, 2010 Business Valuation

Last year I had the privilege of attending the BVR/Morningstar Summit on Best Practices in Business Valuation in Divorce, which will be held this month in Chicago. Unfortunately I have to miss it this year as I will be visiting my new niece in San Diego. They will be discussing the latest developments in business […]

Read the full article →

More on Blazer: Retained Earnings Not Income for Alimony

September 25, 2009 Complex Financial Issues

The Court noted that there is no statutory definition of “income” for alimony cases in California, and it was unclear whether retained earnings could be properly categorized as “income” for alimony purposes.

Read the full article →