CALIFORNIA FAMILY LAW
...Business Interests
......Valuation Issues
.........Factors to Consider/Elements
............Accounts Receivable/Work in Progress
13 Cards On This Topic:

Primary issues to consider when valuing accounts receivable/work in progress.

Consideration of cost of doing business in valuing receivables.

Accounts receivable should be discounted by taxes that will be paid on them when received.

When H ordered to pay a fixed sum from A/R, it doesn’t matter whether he collects the money or not – he still owes the sum ordered to W.

C/P interest in fees collected after separation should be reduced by a portion of actual and necessary costs of doing business.

General rule is that accounts receivable/work in progress are valued as of date of separation, not date of trial.

Accounts receivable of H's business spent by W for living expenses after separation not reimbursable to H.

Court may include as c/p accounts receivable existing as of date of trial.

Character of accounts receivable determined by when earned.

Assets of business acquired after separation are s/p.

Valuation of law practice reversed for failure to consider accounts receivable and other tangible assets.

Accounts receivable earned prior to marriage but received during marriage are s/p.

Accounts receivable as of date of separation are c/p and thus taxable one-half to each party even if only one spouse collected them.