As law students joke, "a corporation can’t vote and does not die."

Divorcing spouses may jointly or separately own stock in a publicly traded company that may be subject to distribution. Determining the value of these assets rarely poses a problem.

A corporation may be modified to special forms, including but not limited to, professional corporations of lawyers and doctors. Professional corporations are usually closely held, which means its stock is owned privately as opposed to one traded publicly on an exchange.

A private company, and determining the value of these entities can be much more difficult.

In divorce, these entities must be appraised by various experts who use different methods to place a value on the corporation for purposes of marital distribution. Many goodwill, salaries versus distribution of profits, return on capital -- make this calculation difficult and subject to dispute in divorce actions.

The problem of assets appreciated passively. During his years, R & R became known as the Mercedes of surf boards, and the company could hardly keep up with business. That increased its goodwill.

Rufus and his partners were thinking about taking the company public about the time Rufus and Rhonda came to the end of the road as a couple. When Rufus and Rhonda parted, dividing his share of R & R will be very challenging. That share is now both martial and separate property of both of Rufus and Rhonda. Both had made contributions, economic and noneconomic, to the prosperity of R & R Surf Boards.

One veteran divorce lawyer says of the complexities of these valuations, "You cannot approach this issue yourself."

See Fair Market Value, Fair Value, Goodwill; Active and Passive Appreciation.

See also Minority Discount.