Active and Passive Appreciation of Separate Property in Divorce

Published: Feb. 16, 2021, noon

Hi Welcome to ValuationPodcast.com - A podcast and video series about all things related to business and valuation.\xa0 My name is Melissa Gragg, and I provide divorce valuation and mediation services in St. Louis Missouri. \xa0

\xa0Today we will discuss Active and Passive Appreciation of Separate Property in Divorce with Dr. Ashok Abbott, an associate professor of finance at West Virginia University and founder of Business Valuation, Inc. where he provides value by determining statistical significance, validating economic models, establishing causality, and providing rigorous empirical analytical support.\xa0

Welcome Dr. Abbott!!\xa0

We are going to discuss an interesting topic in valuation and divorce, so let\u2019s start with some simple terms so everyone can understand the significance of your research paper and analysis.\xa0

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  1. Let\u2019s start a general discussion about divorce and how we divide and distribute the marital estate \u2013 what are the four questions we should consider?\xa0
  2. Is it in fact property?\xa0
  3. Is the property marital or nonmarital?\xa0
  4. How much is the property worth?\xa0
  5. How much of the property does each spouse get?\xa0
  6. In a divorce, how do you determine if property is marital or separate?\xa0
  7. Can you explain to us how marital property is distributed in a community property state? (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington & Wisconsin)\xa0
  8. What does it mean to have an \u201cequitable distribution\u201d of marital property?\xa0
  9. What is active appreciation in an asset or business?\xa0
  10. What is passive appreciation in an asset or business?\xa0
  11. Why do we care whether a business has active or passive appreciation during a divorce?\xa0
  12. You wrote a research paper titled Passive Appreciation in Divorce: A Quantitative Measure. Tell us more about this research and why this is an important topic for valuation experts.\xa0
  13. How do you determine what affect the passive factors have on a business valuation? \xa0
  14. Do you have any past cases where separating the martial assets difficult?\xa0
  15. How can a business valuation expert utilize your research? Can this method of quantifying the passive appreciation be used in court?\xa0
  16. Tell us more about you and your company!\xa0

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Melissa Gragg
CVA, MAFF, CDFA
Expert testimony for financial and valuation issues
Bridge Valuation Partners, LLC
melissa@bridgevaluation.com
http://www.BridgeValuation.com
http://www.ValuationPodcast.com\xa0
http://www.MediatorPodcast.com\xa0
Cell: (314) 541-8163\xa0

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Dr. Ashok Abbott
PhD
Business Valuation LLC
2014 Glenmark Avenue Morgantown, West Virginia 26505\xa0
P: (304) 293-7886
F: (304) 599-7250
E: bizvaluer@valuellc.com\xa0

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