Gender Choices, Business Valuation, & State Specific Variables in the Division of Marital Assets
James A. DiGabriele
Montclair State University
April 5, 2008
The value of a closely held company may represent a significant component of a marital estate. Business valuation services play an increasingly crucial role in determining the value of a closely held family business and often facilitate a divorce settlement by providing an appraisal estimate in the absence of an actual sale as a basis to distributing marital assets. The results of the current study investigate the family court’s decision in cases where the marital estate includes a closely held company. The decision was influenced by two factors: state law (community property versus equitable distribution) and the owner of the business (the husband alone or either the wife alone or as co-owner). Cases in equitable distribution states were over four times more likely to result in a decision for the wife than cases in community property states, and cases in which the wife was either the sole owner or co-owner of the business, the court was over four times more likely to render a decision for the wife.
Number of Pages in PDF File: 18
Keywords: gender, business valuation, maritalworking papers series
Date posted: June 6, 2009
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