Marital Dispute Resolution for High Net Worth Divorce

A divorce between high net worth individuals with business and financial ties can significantly alter the financial positions and tax situations for everyone involved.

Cendrowski Corporate Advisors focuses on sensitive client needs by providing a comprehensive analysis of the financial aspects of each case, supporting law firms and their clients with business valuations, tax implications, and lifestyle analyses for cases that involve child support and alimony. Our divorce dispute valuation services also include:

Navigating Divorce and Taxes

  • Income analysis
  • Net worth determinations
  • Advice on economic and tax issues
  • Trial testimony
Client Success: Business and Income Valuation for Divorce Dispute

During a valuation engagement for a divorce case, the opposing spouse and his brother were the majority owners of several fast food operations of a small franchise chain. We were engaged to determine the value of the businesses and the cash flow received by the opposing spouse.

Through discovery, income tax returns with depreciation schedules were obtained along with franchise agreements and depositions of the franchisor and a minority owner. The tax returns reflected a lack of proper accounting procedures spanning over two decades. The gross value of each operation’s property and equipment (depreciable) assets never changed from the original tax return on any franchise operations.

More importantly, the franchise fee per the franchise agreement was a flat 2% of sales. However, the franchise fee paid per the tax return usually exceeded 3% of sales every year. By recomputing income based on a 2% franchise fee, revenue was calculated to be understated by millions of dollars a year, exceeding eight figures over five years. The opposing spouse’s share of the unreported income was a high six figures annually and mid-seven figures over the five years of tax returns. Based on the implied income of the opposing spouse and under-reported taxable income, a substantial settlement was provided to the opposing spouse within ten days.

UPREITs: Unique Real Estate Investment Structures title on tax documents

UPREITs: Unique Real Estate Investment Structures

Real estate investors always seek opportunities to build, diversify, and maximize their property portfolios. One increasingly popular but complex structure – the UPREIT or umbrella partnership real estate investment trust – offers unique tax incentives for contributing property in exchange for ownership shares. But UPREITs require navigating intricate partnership agreements and tax considerations. This guide […]

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woman calculating her business's value on her couch

Key Components of Business Valuation: Exploring the Methods and Approaches

Business valuation is crucial for establishing deal terms and pricing during mergers, acquisitions, or capital-raising activities. An objective company valuation provides the foundation for negotiations. When selling a business, owners want to maximize the sale price while minimizing tax implications. For potential buyers, smart deal pricing is essential. Accurately valuing a company is essential for […]

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accounting papers that show business valuation

How To Calculate Business Valuation

Knowing your company’s worth provides critical insight for making strategic decisions and charting the optimal path forward. However, accurately valuing a business requires in-depth financial analysis using proven approaches. While quick online calculators can generate ballpark figures, serious leaders turn to the main valuation methodologies accepted by the finance community. Mastering these techniques helps set […]

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