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Term Definition Marketability Discount - a term used to reflect the lack of liquidity in a party’s interest in a private business.
Application in Divorce The term is sometimes used reflect the fact that a party’s interest in a private business carries with it no liquidity.

Cash is the most liquid form of wealth. An interest is not the same as having the money in the bank.

As it applies to divorce, the calculation of a marketability discount may affect the appraisal of a private business.

See also Closely Held Corporation; Marketability Discount; Fair Value; Fair Market Value.