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Business Valuation LLC Phone: 304 692 1385 Fax :304 599 7250 Email: bizvaluer@valuellc.com |
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Active and Passive Appreciation
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Marital and Separate Property in Divorce
In a divorce, marital property, subject to equitable distribution is generally held to be
(1) All property and earnings acquired by either spouse during a marriage, including every valuable right and interest, corporeal or incorporeal, tangible or intangible, real or personal, regardless of the form of ownership, whether legal or beneficial, whether individually held, held in trust by a third party, or whether held by the parties to the marriage in some form of co-ownership such as joint tenancy or tenancy in common, joint tenancy with the right of survivorship, or any other form of shared ownership, and (2) The amount of any increase in value in the separate property of either of the parties to a marriage, which increase results from (A) an expenditure of funds which are marital property, including an expenditure of such funds which reduces indebtedness against separate property, extinguishes liens, or otherwise increases the net value of separate property, or (B) work performed by either or both of the parties during the marriage. In contrast, separate property, which is not subject to equitable distribution in divorce has been generally held to consist of : (1) Property acquired by a person before marriage; or (2) Property acquired by a person during marriage in exchange for separate property which was acquired before the marriage; or (3) Property acquired by a person during marriage, but excluded from treatment as marital property by a valid agreement of the parties entered into before or during the marriage; or (4) Property acquired by a party during marriage by gift, bequest, devise, descent or distribution; or (5) Property acquired by a party during a marriage but after the separation of the parties and before the granting of a divorce, annulment or decree of separate maintenance; and (6) Any increase in the value of separate property as defined in subdivision (1), (2), (3), (4) or (5) of this subsection which is due to inflation or to a change in market value resulting from conditions outside the control of the parties. Business Valuation LLC can help to develop valuation models that identify marital and separate property, and also illustrate the impact of different valuation strategies for your clients. contact us.
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