Carrying on — Divorce case turns on often overlooked valuation discount

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Abstract: Many business owners, investors and their attorneys may be familiar with reducing the value of an ownership interest for lack of marketability or lack of control. But these aren’t the only discounts a court may apply. This article looks at a divorce case in which the value of the spouses’ ownership interests in their real estate development companies was in dispute. The wife asserted that specific discounts applied to the value of the companies’ assets shouldn’t be applied again when valuing ownership interests in the companies. The court agreed in principle, but this article explains why she still lost the case. Citation: Barth v. Barth, No. WD73727, April 10, 2012 (Mo. App., Western Dist.)