Active Efforts of Individuals in an Active Passive Analysis

Active Efforts of Individuals in an Active Passive Analysis

William C. Dameworth, managing member and member in charge of valuation services, discusses the need for businesses appraisers to perform active passive analyses to assist legal counsel and the court in the jurisdiction-specific process of determining what part of separate property asset appreciation caused by the efforts of individuals might be divisible.  Bill discusses helpful analytical steps to determine the increase in value caused by the active efforts by third party management, employees or owners versus the increase in value caused by the active efforts of the divorcing parties. He also discusses factors to consider when allocating appreciation between the third parties and the divorcing parties.