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Active Passive Appreciation Analysis

SITUATION: 
A settlement offer made by a husband to his wife during the course of their divorce and equitable distribution case was declined by the wife.  She subsequently hired a business valuation expert.  The Husband’s attorney hired FSS to value the business interests in the marital estate, opine on active passive appreciation issues, rebut the opinions of the wife’s expert, and to testify in court regarding our findings and opinions.

Several issues were present in this case, including but not limited to:

  1. The validity of a trust in which the husband’s separate assets were transferred prior to marriage;
  2. The value of separate and marital business interests; and,
  3. Identifying and quantifying factors that caused changes in value of separate and marital business interests during the marriage.

The opposing expert presented a value of the marital business interests in excess of $10 million in their report and deposition. Based upon our valuations and active passive appreciation analysis, FSS found no marital value.