Divvying up assets in divorce – In-kind distributions of stock may warrant valuation discounts
Abstract: Divorce courts typically refrain from subtracting discounts for lack of control and marketability when divvying up marital estates that include private businesses. Instead, a spouse is generally entitled to the cash equivalent value of a pro rata share of the entire business. This article, however, discusses a recent noteworthy exception made by the Supreme Court of Rhode Island in McCulloch v. McCulloch. This article elaborates on the ins and outs of the case, noting the importance of considering the rights and liquidity each spouse receives with his or her retained assets. McCulloch v. McCulloch, 2013 R.I. LEXIS 113, June 25, 2013.