How do I value my husband’s shares in his family’s business? This issue frequently occurs in divorce cases where one or the other spouse derives his income from a successful small business. The stock of the business is not traded on a stock exchange, making it difficult to ascertain the value of the ownership interest. Typically, the spouse  who works in the business will receive the shares in the divorce. His continued employment in the business may generate the income used to pay alimony and child support. In addition, the shares may have substantial value as an asset to be equitably divided in the divorce.

Determining the value of an interest in a closely held corporation is one of the most difficult financial issues that a couple can face in a divorce. It often requires the services of an accountant or business valuation appraiser, with expertise in the field of business valuation. These experts generally apply one or more of several commonly accepted valuation methods to determine the value of the business. These methods include the adjusted net-income approach, the adjusted net-asset approach, and the comparable sales or market approach.  [Read more...]

How Does that Affect Your Divorce?

With no immediate likelihood of hiring new judges or law clerks, the impact of losing twenty percent (20%) of Massachusetts Probate and Family Court judges and sixty percent (60%) of the law clerks will continue to have a significant impact on divorcing couples utilizing the Massachusetts court system for resolution of their cases.

In a system that saw 156,000 new case filings this year, the inability of judges and staff to keep up with the caseload is causing delays in the processing of filings and orders, delays in obtaining hearing dates, and increases in the amount of cases that judges must hear on their motion days. Due to the Court’s reduction in public access hours, following up on cases usually leads to attorneys having to travel to the court to obtain answers. This all leads to an increase in the cost for the average client. The attorneys are spending significantly more time in court tracking down files, personally hand-filing new complaints or motions, and waiting for their cases to be called for hearing before the judge.

There is a silver lining to all of these reductions and delays. More divorcing couples and attorneys are turning to collaborative law and divorce mediation as a cost effective alternative — Cost-effective in both time and money. Furthermore, the Probate and Family Court is encouraging these methods of resolution with more stream-lined procedures that will be rolling out in 2012. Before entering the overloaded court system, research whether collaborative law or divorce mediation are a good fit for your situation. To find out more information, contact Attorney Michael Doherty or Attorney Michelle M. Raymond.

Some colleges are now requiring not only both parents’ financial information regardless of whether they are custodial or non-custodial they are also requiring each parent’s spouse’s financial information as well.  Have you planned for this in your divorce agreement?  For more information about financial aid see the article “Before You Say ‘I Do,’ Consider Financial Aid for College” by Todd Weaver, a college financial advisor.

If you have questions or concerns about how this may affect your situation, please contact Massachusetts family law lawyer, Attorney Michelle Raymond at mmr@dcdclaw.com or 508-541-3000.