KWERY:I’m going through a divorce, and my wife’s financial expert valued my business at some ridiculous number. The business is not worth anything without me. How do I counter the expert’s number?
RESPONSE:We experts hear the phrase “The business is not worth anything without me” all the time – and the reality is very few businesses are indeed so unique and the owners so special that the business is not worth anything without that owner. You need your own expert – but don’t expect your expert to simply buy your line that without you the business is not worth anything. While it might be true, the valuation process is far more complex than you might think.
Monday, March 21, 2011
Anecdote of the Week
A WALK ON THE WILD SIDE
It’s the little things that make a difference, that bring a smile to our faces, and a different view of a case. Because we had the same staff person working on two cases, we found out they were linked. The two cases were unrelated in every way – the businesses were completely different, the spouses weren’t related, the attorneys were different for all the parties, etc. However, there was a somewhat subtle link – which my staff person discovered, much to her amusement. It seems that when going through a box of financial records on one of the cases, she came across pictures that showed the wife of that case engaged in some very friendly activity with the wife of the other case
It’s the little things that make a difference, that bring a smile to our faces, and a different view of a case. Because we had the same staff person working on two cases, we found out they were linked. The two cases were unrelated in every way – the businesses were completely different, the spouses weren’t related, the attorneys were different for all the parties, etc. However, there was a somewhat subtle link – which my staff person discovered, much to her amusement. It seems that when going through a box of financial records on one of the cases, she came across pictures that showed the wife of that case engaged in some very friendly activity with the wife of the other case
Monday, March 7, 2011
Tax Tip of the Week*
ALIMONY AND IRA
Alimony income qualifies as the equivalent of earned income for the purpose of making an IRA contribution. This is regardless of whether it is a traditional deductible IRA, a non-deductible IRA, a Roth IRA – any of those IRAs can be paid as the result of receiving alimony income, even if you have no other earned (for instance think of a W-2) income. Whether or not it is worth it for you to do so is a personal tax and cash flow matter.
Alimony income qualifies as the equivalent of earned income for the purpose of making an IRA contribution. This is regardless of whether it is a traditional deductible IRA, a non-deductible IRA, a Roth IRA – any of those IRAs can be paid as the result of receiving alimony income, even if you have no other earned (for instance think of a W-2) income. Whether or not it is worth it for you to do so is a personal tax and cash flow matter.
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