Bernier and Brown, Impact of discounts in business valuation for divorce
Thursday, June 10th, 2010
Business Valuation in the Divorce Arena. Just reviewing the Bernier case (MA SJC-09836, Sept 14, 2007) regarding discounts against fair market value. Bernier cited favorably the New Jersey case Brown v. Brown (Superior Court of NJ, A-985-00T5) regarding discounts for lack of marketability and key person. Thinking about other discounts such as non-controlling interest discounts.
Brown, in addition to not allowing discounts for lack of marketability, did not allow for non-controlling discount (minority shareholder/less than 51% voting shares). How should this case be viewed by MA family courts? Considering that Brown was cited by Bernier, should the non-controlling discount not be allowed by MA? I believe that if the situation calls for it, MA should not allow the discount.
What do you think?
keh
