BLUE SKY VALUE

[Larry Fisher]

><< My soon to be ex-wife's attorney claims my business has some blue sky
>value,
> or good will value.  I'm curious what the rest of you have experienced along
> these lines.  If blue sky has value that holds up in court, how much and for
> how long, how is it calculated and how can it be worth anything to anyone
> else if it's only of value to the service provider??
>  >>
>
>Larry, 
>
>Several questions come to mind.  How far along are you - recently filed/mid-
>pretrial, before four-way conference, or about to go to trial, or in the thick
>of trial?

between the restraint hearing and the review hearing which happens on June 1st.

  Have she and you had any successful negotiations about anything
>since the separation, leading you to think she might, at some point, settle on
>all issues?

She's being very persistently unreasonable about anything and everything.
She needs to grow up and live with reality.  A major point for divorce in
the first place.

  Are you well-represented by an attorney who is at least the equal
>of the other side - reputation, how he/she handles herself in court, etc?

She's quite impressive so far.  She worded the "response" (or whatever it's
called) in such a way that the particular restraint officer that we happen
to "pull" would read it without getting too confused.

>Does your attorney know WA state case law on the business value issues, and
>its stature (published, etc.) as a given case relates to you?  

I'm considering bringing in another "business law" attorney to handle that
end of things.  My attorney specializes in divorce, but doesn't seem to have
as much knowledge on business law or "blue sky".

 Which one of
>you is in the most divorce-motivated (possible leverage for the other side to
>negotiate a favorable settlement for themselves).  

We both are, at the moment, very motivated.  She has a tendency to be quite
tight with money and so I'm hoping that in time she'll "belly up" under the
pressure ..........  but I'm not counting on it.  I'm prepared to drop
thousands more dollars to protect my business, my earnings, and my desire to
come out of this mess with SOMETHING in hand.  For every dollar she can
prove the business is worth, that's one more dollar I don't get in equity
and it represents one more dollar of value for the courts to consider
spousal support with.  The equity in the house is close to $120K.  The
liquid assets are close to 10K and if they prove that the business is worth
100K then I could stand to gain $15K .......  but only if she has the assets
to pay it.  (she keeps the house, I keep the business, she pays $15K)  She
doesn't have $15K or the credit history to finance it.  Her best shot is to
prove that the business is worth well over it's actual value and at 100K
.......  that's pushing it as far as I'm concerned ..... but ...... hence
the reason for this post.  How is business value determined??  I've gotten
quite a few responses regarding this and I've archived them for printing
later.  Thanks to all of you.  

There are no children to complicate this process.  My dad, the one from the
pratical side of the family, says to let her have the house and money and
walk away with the business in tact.  My better instincts tell me that maybe
if I fight, I could end up with some cash.  It all hinges on how the courts
figure value of a service business.  I agree that the last few years
averaged out is the best way to go.  Some say the last 6 months.  At present
her lawyer wants monthy income statements for the present months .......  as
they are finished .......  right ........ during tax season, let's get
REAL!!!  Her lawyer is a DWEEB!!  He also is trying to claim my social
security benifits as personal value.  She has none, I have plenty.

This process is of interest to the entire group since there are some really
good points being brought up and some day ...........  let's hope not, but
some of you may have to deal with this in one way or another.  It also is
putting a very bright spot light on the issue of a prenuptual agreement
........  keep your business in tact folks.  Thar's gold diggers out thar!!

Lar

                                    Larry Fisher RPT
   specialist in players, retrofits, and other complicated stuff
      phone 360-256-2999 or email larryf@pacifier.com
         http://www.pacifier.com/~larryf/ (revised 10/96)
           Beau Dahnker pianos work best under water