Which valuation adjustments are acceptable in divorce?
Abstract: In marriage dissolutions, family courts don’t always embrace U.S. Tax Court precedent regarding ordinary income taxes, capital gains and valuation discounts. This article looks at one recent case that illustrates the dichotomy between valuations prepared for tax purposes and those prepared for divorce cases. It shows that tax adjustments and valuation discounts that are common in Tax Court cases may be denied. Often, out-of-court settlements provide more predictable outcomes. Shuck v. Shuck, No A-10-170, Jan. 25, 2011 (Neb. App. N.W. 2d) Grace v. Grace, 221 Neb. 695, 380 N.W.2d 280 (1986)