Double-Dipping and Business Valuation in Divorce: Strategies to Avoid Twice Distributing the Same Income
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will offer guidance to family law counsel grappling with the complex issues of double counting of income that surface when the parties capitalize the income from a business or professional practice to establish its value for purposes of equitable distribution and then order payment of that same income as future maintenance or support payments. The panel will discuss how to determine if double counting (or double dipping) even occurred, the confusing methodologies used to address the problem, what happens if the double counting problem is not solved, and how to avoid the inequitable result of twice distributing the same income.
- How the double counting problem arises
- Methods of business valuation for purposes of equitable distribution
- State court approaches to double counting
- Strategies for avoiding inequitable result of double counting
The panel will review these and other key issues:
- Assuming that some portion of earnings is capitalized, and distributed as an asset, does the owner have any more income which can be used for spousal support?
- Does double dipping only occur when valuation of the business or practice includes "good will"?
- Which valuation methods most often create a double counting problem?
- What weight is given to future profits and appreciation when evaluating settlements and awards?
Gunnar J. Gitlin, J.D.
The Gitlin Law Firm
Mr. Gitlin exclusively practices divorce and family law. He is a published author and frequent lecturer to... | Read More
Mr. Gitlin exclusively practices divorce and family law. He is a published author and frequent lecturer to family lawyers both statewide and nationally a wide variety of issues including business valuation issues in divorce cases. He is Fellow of AAML and was named by the Illinois ICLE as one of five Illinois family lawyers for their 21st Century Master Teacher's Program.Close
Karolina Calhoun, CPA, ABV, CFF
Ms. Calhoun, Vice President at Mercer Capital, has been involved with hundreds of valuation and litigation support... | Read More
Ms. Calhoun, Vice President at Mercer Capital, has been involved with hundreds of valuation and litigation support engagements in a diverse range of industries on local, national and international levels. Prior to joining Mercer Capital, she was a Senior Auditor at EY (Ernst & Young) in their Audit and Assurance Services practice.Close
Scott A. Womack, ASA, MAFF
Senior Vice President
Mr. Womack, Senior Vice President, has over 20 years of experience in business valuation. During his valuation career,... | Read More
Mr. Womack, Senior Vice President, has over 20 years of experience in business valuation. During his valuation career, he has worked with clients in a wide variety of industries and for purposes including gift and estate tax valuation, litigation support, corporate valuation, ESOPs, and financial reporting.Close