Chapter 15 - The valuation fight
Bennett Urban’s value depended on Alder Row.
If project succeeded:
Daniel’s interest higher.
If failed:
Lower.
Valuation date mattered.
Divorce filing date?
Trial date?
State law and equitable factors.
Experts differed.
Daniel’s expert normalized Alder Row conservatively.
My expert assumed successful completion based on extension.
Gap:
About $430,000 in total company equity value attributable to Daniel.
Not millions.
Then outside investor Ross testified.
He had no reason to favor either spouse.
“Alder Row is not worthless.”
“Is it finished?”
“No.”
“Could equity be impaired?”
“Yes.”
“Could it recover?”
“Yes.”
“What value would you pay for Daniel’s interest today?”
He laughed.
“Less than Daniel thinks and more than Vivian would offer.”
Useful.
Then project documents.
No hidden distributions.
No secret transfer to Vivian.
No effort to move Daniel’s ownership offshore.
Good.
Then one related-party issue.
Bennett Urban paid Vivian a consulting fee:
$96,000 annually.
For:
Investor relations.
Design coordination.
Lender communication.
Was it legitimate?
Mostly.
She did work.
Could valuation normalize some as excess?
Expert thought market compensation:
$65,000–$80,000.
Difference small.
No fake job.
Then Daniel’s salary:
$215,000.
Plus distributions historically.
Current year no distributions due lender restrictions.
Could he reduce income to lower support?
We had no children.
No spousal support.
Not useful.
So no incentive.
Then settlement.
Daniel offered:
I keep all Northlight/Briarcrest.
He receives:
$122,500 house reimbursement/equitable credit.
Bennett Urban valued at agreed midpoint.
I receive:
$290,000 equalization related to marital share of Daniel’s business interest.
Joint brokerage divided.
Retirement adjusted.
Furniture.
Could I accept?
Almost.
Then debt.
Daniel had the $900,000 Alder Row guaranty.
Was marital estate exposed?
Guaranty signed by him alone.
No marital property pledged directly.
But his business interest value could be reduced by contingent exposure.
Experts already considered probability.
No need allocate $900,000 debt to marriage as though payable.
Good.
Then Vivian’s $300,000 side agreement.
Personal/business obligation of Daniel tied to future distributions.
Expert considered.
Then Mara said:
“You are close.”
I was.
Then Daniel asked for one nonfinancial term.
He wanted permission to remain at Briarcrest for sixty days after divorce while he moved.
I laughed.
“Why?”
“It’s been my home too.”
True.
Protection order complicated direct co-occupancy.
I would not live there during his occupancy.
Could Northlight grant temporary license after divorce?
Yes.
But why would I?
Elise asked:
“Do you want to be right or done?”
I hated lawyers.
Then I considered.
Daniel had lived there three years.
He contributed.
He had nowhere immediate? Vivian’s condo available but humiliating, not hardship.
I offered thirty days under written occupancy agreement.
No rent.
Utilities his.
No Vivian overnight? Could I impose? It's company property, but if license, can set guests. But too personal. Better no property damage/parties, reasonable guest policy. Vivian not excluded unless protection order impacts Claire absent. Since I wouldn't be there, not an issue.
Daniel accepted.
Then Vivian found out.
She told him:
“You’re paying Claire to let you stay in your own house.”
He answered:
May you like
“It isn’t my house.”
Finally.
