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Matrimonial Planning Through Economic Turmoil

BY Martin M. Shenkman
January 29, 2009

The markets are in turmoil. Tax, business, economic and, investment matters are increasingly uncertain. These developments affect every aspect of matrimonial planning and may continue to do so for years. Practitioners need to reevaluate all aspects of their planning. This article provides an overview of some of the points practitioners should consider.

Valuations

With the economy in a tailspin, valuation issues will come to the fore. Spouses owning business interests will argue that historical data are not fully relevant to current value in light of uncertainty, changes to the economy and so forth. In the extreme, it will be impossible to value a business using traditional historical data if the business is teetering on extinction (e.g., a mortgage brokerage business that the ex-spouse ran successfully for many years has now been reduced from a score of employees to just the ex-spouse working out of her basement). With the stock market declines and negative economic news coming in rapid spurts, the selection of a date to file ' and thereby establish a valuation date ' could have more importance than it has had in many decades.

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