NEW JERSEY DIVORCE : BUSINESS VALUATION

A frequent issue in New Jersey divorce cases is the valuation of a closely held business. Here, the Court deals with the buyout of an interest in a LLC [Limited Liability Company]. Plaintiff asserts he is entitled to a figure determined by his expert accountant pursuant to the Operating Agreement, while defendants contend plaintiff's interest is subject to a rate swap, yielding a lower valuation. They also allege he acted in bad faith in setting up a competing company. Because the parties agree on the minimum amount due, the Court enters judgment for that amount. As to the balance, the court denies summary judgment, concluding additional discovery is necessary. Gerber, Jr. v. Gerber, et al., New Jersey Ch. Div., June 2, 2006