| Valuation of Closely Held Businesses in Divorce Proceedings |
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| Generally, divorce cases involving thorny property issues can be complicated to resolve. This especially is true when the marital estate includes a closely-held business. A closely-held business usually presents one of two scenarios in the divorce context. The business may be tied to one spouse who is responsible for the business's success. Distribution of the business to one spouse often creates asset allocation and business valuation issues. It presents the problem of valuing the business and structuring the parties' assets and liabilities in order to provide the other spouse with a comparably valued property distribution. If the business depends on the operating spouse's good will and management, which many closely-held businesses do, then the true value can suffer under the emotional stress common in divorce even if the business is distributed to the key-person spouse. A business having one value when operated by the key-person spouse can have a far different value when distributed to the non-operating spouse. More... |
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| Domicile and Residence Issues in Divorce |
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| In order to obtain divorce, domicile and residence are important factors. One party must be resident and domiciled in the state where the divorce is sought. In order for the court to obtain jurisdiction, the requirements are "actual residence" and legal domicile. Jurisdiction is determined at the time the divorce petition is filed. More... |
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| Property Division in Divorce: Insurance Benefits |
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| In divorce, a critical issue impacting the treatment of insurance policies is whether the policy benefits are separate property or marital property. State divorce courts have reached varied answers on the question of whether a life insurance policy is separate or marital property. In some states, "whole life" insurance contracts have been held to be marital property and generally have been valued at their cash surrender value. "Term life" policies, on the other hand, which lack a surrender value, have not been considered divisible property. In states in which inheritances or gifts are classified as separate property, insurance proceeds usually are not treated as marital property for purposes of property distribution in divorce. Other courts have ruled that the proceeds of a life insurance policy purchased with community property should be treated as community property in a divorce. More... |
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| Property Division in Divorce: Treatment of Workers' Compensation Benefits |
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| In common law equitable distribution states, the general presumption is that workers' compensation is treated as marital property if acquired during the marriage. In pure community property jurisdictions, it is treated as community property if acquired during marriage and as separate property if it is acquired before marriage or after marriage dissolution. More... |
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| Fault-Based Divorce: Impotence |
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| Impotence of either spouse is considered as one of the traditional fault grounds for divorce, and it remains a ground for fault-based divorce in some states. Some of those states allow grounds for annulment also to be grounds for fault-based divorce, and that includes impotence. In those states, the marriage is voidable if the afflicted spouse is found to have been impotent at the time of marriage and to have remained impotent up to the time the petition is filed. Generally, the petitioning spouse must prove that the impotent spouse is incapable of having sexual intercourse in order to get a divorce on this ground. Some of the states that retain impotence as a ground for divorce require that the impotence be permanent and incurable. In the case of the impotent husband, the advent of drugs to treat erectile dysfunction may affect that standard. More... |
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