Chapter 14 - The business valuation
Forensic accountant Samuel Ortiz valued Bennett Custom Interiors.
Not by reading one bank balance.
He reviewed:
Revenue.
Normalized earnings.
Debt.
Customer concentration.
Equipment.
Backlog.
Owner compensation.
Judith note.
Result range:
$410,000 to $560,000 enterprise equity value after debt, depending assumptions.
Graham argued:
$260,000.
Why?
Upcoming loan maturity.
Lost hotel client.
His reduced role during legal crisis.
My expert:
Company still had healthy backlog.
Eventually neutral expert estimate:
$438,000 marital business value attributable to Graham’s ownership interest after recognized debt and adjustments.
Could I take half the company?
Legally property division could include value.
Practically:
No.
I did not want to own cabinets with Graham.
We would offset.
Then Judith’s $38,400 “family advance.”
Was it marital debt?
No signed note.
Texts.
Judith:
I’ll cover the mortgage until Graham gets the company steady.
Me:
We’ll pay you back someday.
Damn.
I had written that.
Could support loan.
Then later Judith:
Don’t worry about repayment. Family takes care of family.
Contradiction.
Judge or settlement could classify partly.
We negotiated later.
Then dissipation?
Did Graham waste marital assets protecting Judith?
Not much.
Legal fees for her?
No.
He did not pay her criminal lawyer.
Good.
Business loan legitimate.
No secret transfers.
No affair.
No gambling.
May you like
The marriage ended over loyalty and truth, not stolen money.
That made it no less final.
