Business Valuation | Double-Dipping Issues in COA Decision

The Michigan Court of Appeals ["COA"] yesterday decided a case involving some interesting issues: business valuation,  spousal support, double-dipping, property distribution, attorney fee award, and spousal support. The COA affirmed the trial court.

The defendant husband argued that the trial court improperly used the parties’ business income twice, once in property distribution and again in calculating spousal support, resulting in an unfair
“double dip” into the same stream of income. This is an issue that arises often in cases involving division of a business asset and also a spousal support award.

The COA's discussion of the business valuation methods used by the expert and about why the trial court accepted the report in part and modified it in part is instructive and may assist family lawyers in future cases about how to prepare their cases and how to work with a business valuation expert to arrive at a good evaluation. Additionally, the double-dip discussion is very interesting.

Download Juarez v Juarez Docket No. 310470 (Mich App December 12, 2013) (Unpublished)

More on double-dipping:  Laura W. Morgan, "Note,“DOUBLE DIPPING”: A GOOD THEORY GONE BAD," Journal of the American Academy of Matrimonial Lawyers, Vol 25, Fall (2012): pp. 133-151, http://tinyurl.com/p4gluz2 (accessed December 13, 2013).