Court of Appeals addresses valuation of a closely held business

The November 28, 2018 Court of Appeals opinion in Clark v. Clark is one more data point in the confusion that is South Carolina transmutation litigation. Clark further addresses how one values the minority shares of a closely held business. The primary issue on appeal involved identifying the marital portion and valuing PCI, a business owned by Husband’s parents at the time of the parties’ marriage. After Husband’s mother died, his father obtained a 75% interest in the business with his sister controlling 25%. Litigation ensued between his father and sister, resulting in his father gifting Husband his 75% interest and sister selling her 25% interest back to the business. Subsequently Wife, concerned about protecting their children’s inheritance should anything happen to Husband, asked Husband to gift her 25% of the shares in the business, which Husband did. At the time of this gift, Wife signed an acknowledgment that the agreement could not be construed…

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