When a couple divorce, who gets the goodwill? Understanding how to correctly determine wealth appropriation is a “must-know” skill, but it is difficult to master. The most troubling issue with active and passive appreciation in divorce cases is applying a method based on empirical evidence and a clear common sense framework. Ashok Abbot demonstrates a methodology and supporting evidence to successfully isolate passive appreciation. Work through practice-ready examples across several industries and you’ll be sure to come away with a new appreciation … for this method.
Program Agenda
Understand the importance of appropriation of active and passive wealth, and the factors that drive demand in this area of matrimonial work
The difference between active (spousal effort), and passive (economic environment) components
Learn the empirical estimation method for identifying significant economic environmental factors and their relative contribution to growth in revenues for selected product categories
Identify the separate property component of the business
Estimate the passive increase in value of this separate property during marriage.
Identify the causal factors impacting the change in value of the separate property during the marriage that are outside the control of the parties
Measure the partial and aggregate impact of the identified causal factors, individually and collectively, on the change in value of the separate property during the period of marriage.
Identify the proportion of total appreciation attributable to passive factors.
Empirical data and methodology
Examples
Areas for further research
Learning Objectives
Describe the difference between active and passive appreciation in a matrimonial litigation setting
Demonstrate a method to separate passive from total appreciation using empirical evidence
Describe the data and evidence supporting the active/passive method
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