Dividing Goodwill: A Case Study in Active and Passive Appreciation
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- 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
- Areas for further research
- 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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