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

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

Credits

Alaska

Approved for CLE Credits
1.5 General

Our programs are CLE-eligible through Alaska's recognition of multi-jurisdictional reciprocity.
Alabama

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1.5 General

Arkansas

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1.5 General

Our programs are CLE-eligible through Arkansas's recognition of multi-jurisdictional reciprocity.
Arizona

Approved for CLE Credits
1.5 General

California

Approved for CLE Credits
1.5 General

Colorado

Pending CLE Approval
1.5 General

Connecticut

Approved for CLE Credits
1.5 General

District of Columbia

No MCLE Required
1.5 General Hours

Delaware

Pending CLE Approval
1.5 General

Florida

Reciprocity
2 General

Receive CLE credit in Florida via reciprocity
Georgia

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1.5 General

Hawaii

Approved for CLE Credits
1.5 General

Iowa

Pending CLE Approval
1.5 General

Idaho

Pending CLE Approval
1.5 General

Illinois

Pending CLE Approval
1.5 General

Indiana

Pending CLE Approval
1.5 General

Kansas

Pending CLE Approval
1.5 General

Kentucky

Pending CLE Approval
1.5 General

Louisiana

Pending CLE Approval
1.5 General

Massachusetts

No MCLE Required
1.5 General Hours

Maryland

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1.5 General Hours

Maine

Pending CLE Approval
1.5 General

Michigan

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1.5 General Hours

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Approved for Self-Study Credits
1.5 General

Missouri

Approved for CLE Credits
1.8 General

Mississippi

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1.5 General

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1.5 General

North Carolina

Pending CLE Approval
1.5 General

North Dakota

Approved for CLE Credits
1.5 General

Our programs are CLE-eligible through North Dakota’s recognition of multi-jurisdictional reciprocity. Section 1, Policy 1.14
Nebraska

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1.5 General

myLawCLE reports attendance to Nebraska on each attorney's behalf for all programs. Please do not self-report.
New Hampshire

Approved for CLE Credits
1.5 General

As of July 1, 2014, the NHMCLE Board no longer provides pre- or post-approval of courses. Attendees must self-determine whether a program is eligible for credit, and self-report their attendance online at www.nhbar.org, based on qualification provisions of Rule 53.
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Approved for CLE Credits
1.8 General

Our programs are CLE-eligible through New Jersey's recognition of multi-jurisdictional reciprocity, except for the courses required under BCLE Reg. 201:2
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Approved for CLE Credits
1.5 General

Nevada

Pending CLE Approval
1.5 General

New York

Approved for CLE Credits
1.8 General

Our programs are CLE-eligible through New York’s Approved Jurisdiction Group “A”.
Ohio

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1.5 General

Oklahoma

Approved for Self-Study Credits
2 General

Oregon

Pending CLE Approval
1.5 General

Pennsylvania

Approved for CLE Credits
1.5 General

Rhode Island

Pending CLE Approval
2 General

South Carolina

Pending CLE Approval
1.5 General

South Dakota

No MCLE Required
1.5 General Hours

Tennessee

Approved for Self-Study Credits
1.5 General

Texas

Pending CLE Approval
1.5 General

Utah

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1.5 General

Virginia

Not Eligible
1.5 General Hours Hours

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1.5 General

Washington

Approved via Attorney Submission
1.5 Law and Legal

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Wisconsin

Pending CLE Approval
1.5 General

West Virginia

Pending CLE Approval
1.5 General

Wyoming

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1.5 General

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