Successfully Dividing Business Assets in a Marital Divorce: Creative options for valuing and dividing private company interests

Ladd Hirsch
Ladd Hirsch | Bradley LLP

Ladd Hirsch is a senior business trial partner in the Dallas office of Bradley LP, who focuses much of his practice in handling Business Divorce matters —representing majority owners and minority investors with conflicts arising out of their interests in private companies.

On-Demand: February 28, 2024
Successfully Dividing Business Assets in a Marital Divorce: Creative options for valuing and dividing private company interests

$195.00 1.5 hour CLE

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Program Summary

Marital divorces often involve conflicts, but this is even more likely to be the case when the marital estate includes substantial interests the spouses own together in private companies, which they are seeking to divide in their divorce action. Conflicts may arise over the following issues when this shared ownership in companies exists: (i) what is the fair market value of the interest in the business(es), (ii) what amount will one spouse pay to acquire the other spouse’s ownership interest in the business, and (iii) what payment terms are reasonable for the spousal interest. This presentation reviews options for spouses (and their advisors) to consider that may help them reach an objective value for their private company interests. The couple can then work on how to divide their ownership interests in a divorce settlement that prevents their divorce from dragging on for an extended time and at great expense.

Key topics to be discussed:

  • The preparation that is required before buyout negotiations begin
  • Typical options used to determine value of private company interest
  • Some out of the box valuation methods to value private companies
  • The importance of creativity and flexibility to reach a favorable outcome

Closed-captioning available

Speakers

Ladd Hirsch | Bradley LLP

Ladd Hirsch is a senior business trial partner in the Dallas office of Bradley LP, who focuses much of his practice in handling Business Divorce matters —representing majority owners and minority investors with conflicts arising out of their interests in private companies. During his 40 years as a first chair trial attorney representing successful companies and high net worth individuals, Ladd has handled a wide range of complex, multi-party business disputes in both state and federal courts, as well as in arbitration proceedings. Ladd’s Business Divorce practice also includes frequent work with family law counsel assisting their clients with business ownership issues arising in marital divorce proceedings. In his business litigation and Business Divorce practice, Ladd’s clients span many different industries, including healthcare, computer software and other technology, real estate, oil and gas/energy, multi-level marketing, restaurant chains, online businesses and entertainment law. These matters often involve claims for breach of fiduciary duties, breach of contract, fraud and other business torts.

Ladd is active in the Dallas and American Bar Associations, and is a frequent CLE speaker. He has been listed for more than 10 years as a Super Lawyer in the Thomson Reuters survey of Texas lawyers, and by D Magazine as one of the Top 100 lawyers in Business Litigation in Dallas. Ladd is a past Chair of the Litigation Section of the Dallas Bar Association, and a past President of the American Jewish Committee – Dallas Region. In other community activities, he is a past Board member of Temple Emanu El, the Jewish Family Service, the Dallas Children’s Theater and the Vogel Alcove.

Agenda

I. The preparation that is required before buyout negotiations begin | 3:00pm – 3:20pm

II. Typical options used to determine value of private company interest | 3:20pm – 3:40pm

III. Some out of the box valuation methods to value private companies | 3:40pm – 4:00pm

Break | 4:00pm – 4:10pm

IV. The importance of creativity and flexibility to reach a favorable outcome | 4:10pm – 4:40pm