FVC2113. Active vs. Passive Appreciation: Overview and Examples

This seminar will present a quantitative approach for estimating active and passive appreciation of an ownership interest in a closely held business for purposes of equitable distribution in divorce. A case study illustrating the method will be presented.

• Review of representative case law and professional treatises

• Analysis of appreciation resulting from passive factors such as market forces and the efforts of third parties

• Analysis of appreciation attributable to the active efforts of the parties

• Case study illustrating the method.

Learning Objectives:

• To provide participants with an understanding of the relevant case law and principals relating to the treatment of active and passive appreciation
• To provide participants with a model for quantifying the active and passive components of appreciation