n ANNUAL MEETING November 1–4, 2011 Renaissance Hotel Chicago, Illinois n MIDYEAR MEETING March 11–15, 2012 Marriott Los Sueños Ocean and Golf Resort Playa Herradura, Costa Rica n AICPA/AAML CONFERENCE May 9–11, 2012 Aria Resort and Casino Las Vegas, Nevada n INSTITUTE FOR FAMILY LAW ASSOCIATES June 21–24, 2012 Renaissance Hotel Chicago, Illinois n ANNUAL MEETING November 7–10, 2012 J.W. Marriott Hotel Chicago, Illinois American Academy of Matrimonial Lawyers N E W S n E V E N T S n I N F O R M A T I O N FALL 2011 T he Mission of the AAML is to provide leadership that promotes the highest degree of professionalism and excellence in the practice of family law. http://www.aaml.org Cal e n d a r CLE CLE AAML 2011 Annual Meeting in Chicago alimony recapture and family support; prepaid taxes, estimated payments and losses as a marital asset; foreclosures and cancellation of debt; attorney fees; and retirement accounts. Finally, the panel will provide helpful trial techniques and tips for presenting clear and persuasive evidence to judges regarding tax issues. THURSDAY, November 3, 2011 PRIVACY AND COMMUNICATIONS DAY P rogram Chair Joslin Davis will lead our second day. The speakers will address “Privacy Issues” and “Male/Female Communications.” We will begin the day with Fellow William M. Levine from Boston, Massachusetts who will be discussing privacy issues, specifically, the new Massachusetts law and give us insights about the wave of future privacy requirements that are coming the way of all family lawyers. Mr. Levine is also a Fellow of the International Academy of Matrimonial Lawyers and has recently completed a term as a member of the Board of Directors of the Association of Family and Conciliation Courts, Massachusetts Chapter. We will next hear from Steven D. Stark and Sarah Wald who will present on male/female communications issues. They will give you fasci- nating practical tools for understanding how gender affects communica- tion in American life and dozens of tips to help you in your daily work. Mr. Stark is a writer, lawyer, and consultant who teaches courses on writing and speaking to lawyers and other professionals. A former cultural commentator for CNN, National Public Radio, and the Voice of America, he has written frequently for the New York Times, the Los Angeles Times, the Atlantic Monthly, and the Boston Globe where he was an op-ed columnist. by James T. McLaren, CLE Committee Chair, AAML Vice President n Columbia, South Carolina Sarah Wald is the former Dean of Students at Harvard Law School and a former Assistant Provost at Harvard University. She is currently Chief of Staff at the Harvard Kennedy School. FRIDAY, November 4, 2011 LIAR’S DAY O n Friday, Program Chair Anita M. Ventrelli has arranged an excellent program otherwise known as the “Truth or Consequences” day. We will begin with “Liar’s Court: Defeating Lies in Matrimonial Matters from Negotiation to the Courtroom,” a presentation by Mario R. Ventrelli, a partner at Schiller DuCanto & Fleck LLP, that will school Fellows on the non-verbal signs of lying in negotiations with a multi-media presentation and audience participation. In the second half of the day, “The Truth is More Important than the Facts: The Consequences of Lying,” The Honorable Edward Jordan of the Cook County Circuit Court, Domestic Relations Division and our own Past-President, Donald Fullenweider, will delve into the pan- oply of consequences of lying by parties, witnesses or counsel of record. We should have an action packed three days of CLE in Chicago. All of the speakers have worked very hard to meet the challenge to make their materials and presentations high level, interesting, and useful in our day-to-day practices. Travel safe and I hope to see you in Chicago. n Jim McLaren 4 4 4 Come to the 2011 Annual Meeting in Chicago and learn from speakers on various current topics of special interest. In a change from previous years, the Continuing Legal Education programs will be held on Wednesday, Thursday, and Friday, November 2– 4, 2011. CLE Chair James T. McLaren with Program Chairs Melissa J. Avery, Joslin Davis, and Anita M. Ventrelli have put together compelling and informative programs for our Fellows. Please plan to attend. WEDNESDAY, November 2, 2011 TAX DAY P rogram Chair Melissa J. Avery will begin the program with an intensive look at the more Complex Tax Issues facing our Fellows in their divorce practices. AAML Fellows Daniel J. Jaffe of Beverly Hills, California and David S. Dolowitz of Salt Lake City, Utah will join CPA, ABV and CFF Michelle F. Gallagher of Lansing, Michigan to create an experienced panel sure to provide valuable information on high level taxation questions arising in divorce. The speakers will address such issues as: how to get and use IRS Private Letter Rulings; tax planning in prenuptial agreements; the status of innocent spouse relief; domestic partnerships; off shore accounts; The Loop, Chicago
Transcript
n ANNUAL MEETING
November1–4,2011 Renaissance Hotel Chicago,Illinois
n MIDYEAR MEETING
March11–15,2012 Marriott Los Sueños Ocean and Golf Resort PlayaHerradura,CostaRica
n AICPA/AAML CoNfERENCE
May9–11,2012 Aria Resort and Casino LasVegas,Nevada
n INsTITUTE foR
fAMILY LAw AssoCIATEs
June21–24,2012 Renaissance Hotel Chicago,Illinois
n ANNUAL MEETING
November7–10,2012 J.W. Marriott Hotel Chicago,Illinois
American Academy
ofMat ri mo nial Law yersn e w s n e v e n t s n i n f o r m a t i o n
f A L L 2 0 1 1
The Mission of the AAML is to provide leadership that
promotes the highest degree of professionalism and excellence in the practice of family law.
http://www.aaml.orgCal endar CLECLEAAML 2011 Annual Meeting in Chicago
alimony recapture and family support; prepaid taxes, estimated payments and losses as a marital asset; foreclosures and cancellation of debt; attorney fees; and retirement accounts. Finally, the panel will provide helpful trial techniques and tips for presenting clear and persuasive evidence to judges regarding tax issues.
THURsDAY, November 3, 2011
PRIVACY AND COMMUNICATIONS DAY
Program Chair Joslin Davis will lead our second day. The speakers will address “Privacy Issues” and “Male/Female Communications.”
We will begin the day with Fellow William M. Levine from Boston, Massachusetts who will be discussing privacy issues, specifically, the new Massachusetts law and give us insights about the wave of future privacy requirements that are coming the way of all family lawyers. Mr. Levine is also a Fellow of the International Academy of Matrimonial Lawyers and has recently completed a term as a member of the Board of Directors of the Association of Family and Conciliation Courts, Massachusetts Chapter.
We will next hear from Steven D. Stark and Sarah Wald who will present on male/female communications issues. They will give you fasci-nating practical tools for understanding how gender affects communica-tion in American life and dozens of tips to help you in your daily work.
Mr. Stark is a writer, lawyer, and consultant who teaches courses on writing and speaking to lawyers and other professionals. A former cultural commentator for CNN, National Public Radio, and the Voice of America, he has written frequently for the New York Times, the Los Angeles Times, the Atlantic Monthly, and the Boston Globe where he was an op-ed columnist.
by James T. McLaren, CLE Committee Chair, AAML Vice President n Columbia, South Carolina
Sarah Wald is the former Dean of Students at Harvard Law School and a former Assistant Provost at Harvard University. She is currently Chief of Staff at the Harvard Kennedy School.
fRIDAY, November 4, 2011
LIAR’S DAY
On Friday, Program Chair Anita M. Ventrelli has arranged an excellent program otherwise known as the “Truth or Consequences” day.
We will begin with “Liar’s Court: Defeating Lies in Matrimonial Matters from Negotiation to the Courtroom,” a presentation by Mario R. Ventrelli, a partner at Schiller DuCanto & Fleck LLP, that will school Fellows on the non-verbal signs of lying in negotiations with a multi-media presentation and audience participation.
In the second half of the day, “The Truth is More Important than the Facts: The Consequences of Lying,” The Honorable Edward Jordan of the Cook County Circuit Court, Domestic Relations Division and our own Past-President, Donald Fullenweider, will delve into the pan-oply of consequences of lying by parties, witnesses or counsel of record.
We should have an action packed three days of CLE in Chicago. All of the speakers have worked very hard to meet the challenge to make their materials and presentations high level, interesting, and useful in our day-to-day practices. Travel safe and I hope to see you in Chicago.
n Jim McLaren
4
44
Come to the 2011 Annual Meeting in Chicago and learn from speakers on various current topics of special interest.
In a change from previous years, the Continuing Legal Education programs will be held on Wednesday, Thursday, and Friday, November 2– 4, 2011. CLE Chair James T. McLaren with Program Chairs Melissa J. Avery, Joslin Davis, and Anita M. Ventrelli have put together compelling and informative programs for our Fellows.
Please plan to attend.
wEDNEsDAY, November 2, 2011
TAX DAY
Program Chair Melissa J. Avery will begin the program with an intensive look at the more Complex Tax Issues facing our Fellows
in their divorce practices. AAML Fellows Daniel J. Jaffe of Beverly Hills, California and David S. Dolowitz of Salt Lake City, Utah will join CPA, ABV and CFF Michelle F. Gallagher of Lansing, Michigan to create an experienced panel sure to provide valuable information on high level taxation questions arising in divorce.
The speakers will address such issues as: how to get and use IRS Private Letter Rulings; tax planning in prenuptial agreements; the status of innocent spouse relief; domestic partnerships; off shore accounts;
to you the honor it has been to serve as your President this year.
I am grateful for all the help you have given me throughout the year. My trips to so many of the Chapters were the highlight for me as it gave me an opportunity to see the Chapters good works and their camaraderie. You certainly made me proud to be your President.
During the past year, I saw my most useful contribution to be a fix-it-and-finish-it President. I have tried to do that. I am grateful for the assistance of my Committees in meeting that goal. Although they had a very limited time in which to accomplish tasks (starting after last November and ending before this November), they worked hard to help me fulfill my pledge to you.
To highlight some of those accomplishments: major improvements were made to the Website; the Bylaws were revised to streamline procedures; we began moving some of the work on webinars and CLEs into the office; the Standards for Representation of Children and the Standards for Custody Evaluations were completed and printed. A collaboration with AFCC (Association of Family and Conciliation Courts) and with the National Council of Juvenile and Family Court Judges is underway; discrepancies in our Standards for
Admission were eliminated; under the leadership of SusanMyers the National test was reviewed, with JoannRossWilder updating study materials and making changes and additions to the test. Work continues on streamlining the Admissions Procedures.
It is challenging to single out any one Fellow for recognition because all of the Committees graciously took on the tasks that I gave them. However, I would like to acknowledge a few individuals for specific help they gave me this year.
n KenAltshuler, AltonAbramowitz, and MariaCognetti were my kitchen cabinet, offering me their insights and guidance on some major decisions.
n DebEldridge and her committee worked tirelessly to improve the website.
n JimMcLaren assisted Deb while at the same time taking on the time consuming work of being the CLE Chair. Jim and his Program Chairs, AnitaVentrelli, JoslinDavis and MelissaAvery, put in countless hours to present thoughtful and instructive programs for us.
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n My thanks to RonAnteau for his excellent advice as my counsel, and to my able Parliamentarian, KitPetersen.
n And, of course, I am grateful to our Executive Director VickiWest and her staff for their tireless behind-the-scenes work.
Last but not least, thank you Fellows for every-thing you do for the Academy, and especially for fulfilling our mission of providing leadership that promotes the highest degree of professionalism and excellence in the practice of family law. You live out our mission every day through your work with each other and with your clients.
May your lives be filled with much love, luck and laughter. Thank you all.
LindaLeaViken AAMLPresident2010–2011Rapid City, South Dakota
– Florida Chapter – Illinois Chapter – Kentucky Chapter – Minnesota Chapter – Mountain States Chapter – New Jersey Chapter – North Carolina Chapter – Ohio Chapter – Pennsylvania Chapter – Southern California Chapter – South Carolina Chapter
n GOOD COUNSEL: Go Figure, an ongoing . . . . . . . . . 14–16 column by Financial Research Associates: The View from Five States: Goodwill in a Dental Practice
A s my “swearing in” day quickly approaches, I must say my main trepidation is attempting to come close to
the incredible job Linda Lea Viken did as president this year. I am in awe of her abilities, her passion, and her dedication to the AAML. It has been an honor to watch and learn from Linda Lea as she so effortlessly leads this wonderful organization. Thank you Linda Lea from the entire Fellowship.
I am finalizing my proposed committee appoint-ments, for approval by the Board of Governors. The one thing I have learned in my years of AAML Fellowship is how vital committee work is for the organization. Committees are truly the lifeblood of the AAML and I am very thankful for those who have volunteered to serve on a committee.
I did want to point out some new committees that I hope will have a positive impact for the AAML during my presidential year.
n THE ADMISSIONS PROCESS COMMITTEE. We have been reviewing different aspects of the admission process (the application, the national exam, chapter review), but we have not yet looked at all aspects of the process from an overall perspective. So this committee will take a global view of the entire application process and make appropriate recommen-dations to the Executive Committee and Board of Governors.
n THE BEST PRACTICES COMMITTEE. The revised Best Practices committee would be chaired by the Immediate Past President, would include as members any past presidents who wish to serve on the committee, and would serve as a “brain trust,” proposing projects to the Executive Committee and Board of Governors that it deems appropriate to explore and develop.
n THE CHILD-CENTERED RESIDENTIAL SCHEDULING GUIDELINES COMMITTEE. First Vice President AltonAbramowitz wishes to produce a publication addressing various guidelines for parenting schedules. Because this will likely be a two-year project, a committee is being appointed now to begin this analysis.
n COMMITTEE LIAISON. During JimHennenhoefer’s presidency, he appointed a “committee czar” to serve as a liaison to all committees, to keep the committees on task, answer any questions they may have, and to insure minutes are produced by the committees for the review of the Executive Committee and Board of Governors. I have asked Jim and CaryMogerman to serve in this capacity during my administration.
n THE EXECUTIVE COMMITTEE STRUCTURE COMMITTEE. I believe it is important to continually review necessary expenditures of the AAML leadership. Towards this end, I want to make sure that the Executive Committee consists of those individuals that are absolutely essential to the smooth operation of the organization. Do we require the number of vice presidents currently mandated by the by law? What committee chairs should be ex officio members of the Executive Committee and which are not necessary?
This committee will scrutinize the current configuration of the Executive Committee. I have asked the committee to make its recommendation directly to the Board of Governors to avoid the Executive Committee having to consider a proposal that directly affects its members.
n THE SOCIAL MEDIA COMMITTEE. With Facebook and Twitter becoming such a prominent part of our society, communication, and marketing, this committee will discuss and recommend appropriate uses of social media for the AAML.
A few words about the annual meeting in Chicago in November. As you know, this will be the last year that we meet at the Renaissance. As we celebrate our 50th anniversary I felt it was fitting to try a new venue for our 2012 meeting. The new J.W. Marriott is waiting to greet us next November, but we get a sneak peak of the facilities at the President-Elect’s Reception on November 3 this year. Please plan on joining us for a preview of our 2012 meeting site.
And, of course, I am also very excited to finalize our plans for the Midyear meeting in Costa Rica, March 10 –15, 2012. As you may know we sold out the entire hotel within ten days of opening registration. If you are still interested in attending we can assist you with a rental of one of the condominiums surrounding the hotel. I promise you this will be one of the most memorable trips you will ever have.
Finally, I want to express my gratitude to the Association of Family and Conciliation Courts for our inaugural joint presentation in Philadelphia in September. It was so wonderful to see top shelf attorneys working with the best mental health professionals in the country, presenting ten seminars to a sold out audience of 250 plus. A special nod to the Executive Director of the AFCC, PeterSalem, who masterfully put forth a seamless production. And, of course, our own MariaCognetti and GuyFerro who helped me plan the program.
From the Desk of the President-Electby Kenneth P. Altshuler, AAML President-Elect Portland, Maine
n Ken Altshuler
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 3 | Fall 2011
AAmL foundation
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 4 | Fall 2011
president was given the opportunity to speak about our mission at the Academy CLE conferences. Explaining the purpose of the Foundation and promoting its mission was a strategic move! More and more Fellows joined the Foundation. People began making donations to the Foundation for celebratory or sad events. With each contribution, the Foundation became more secure and was able to grow. Joy thoroughly enjoyed promoting the Foundation!
…the One Billable Hour Campaign, has been hugely successful and in turn allowed the Foundation in 2011 to fund the largest annual grant awards to date!
Within a few years after Joy’s Presidency (1997–1998), many of the AAML leaders were integrally involved in the Foundation. Joy recalled that SuzieThorn, as President of the Foundation, led the Board in establishing a policy for grants. It continues to guide us to this day.
Spouses became involved in donating— LailaKolodny began contributing a percentage of her jewelry sales at our annual Chicago meetings. BobMoses donated fine wine treasured by many bidding wine connoisseurs and JudyOstrow donated exquisite handcrafted purses. KitPetersen’s husband, LesDoty, served as Kit’s loyal jewelry salesman during our meetings and Kit donated a percentage of her sales to the Foundation! The silent auction grew,
as AAML fellows generously donated vacation homes, sports memorabilia, art and other intriguing items.
State Chapters began donating. Illinois used proceeds from its Dinner Dance and book sales to contribute funds to the Foundation and has regularly donated $5,000 annually. The Texas Chapter has donated generously in honor of the Academy Presidents who hail from Texas. Missouri, Florida, Ohio, South Carolina have made substantial monetary contributions. Many other state chapters have donated as well.
TomWolfrum and ArnieRutkin’s brain child, the OneBillableHourCampaign, has been hugely successful and in turn allowed the Foundation in 2011 to fund the largest annual grant awards to date!
There are so many people to thank, including, but not limited to all those who pulled the Foundation up from its beginnings, pushing, propping and holding our organization until its roots grew deep and solid into the fabric of the AAML. As is required, the Foundation is legally separate from the AAML, however the soul and spirit of the AAMLF rests within the wonderful AAML Fellows who have given and who continue to give to this most worthy cause!
We hope that you will be able to join us to celebrate our 20th Anniversary honoring our past Presidents, the Charter Board and Charter Lifetime members of our Foundation.
Please join us at our annual cocktail party on Wednesday,November2,2011, during the AAML annual conference and thank you in advance for your contribution to our 2011–2012OneBillableHourCampaign which began September 1, 2011.
In the last Academy newsletter, DonnFullenweider and MikeAlbano shared with us thoughts and memories of their respective presidencies. This time, JoyFeinberg shares her memories.
Joy recalls flying to Connecticut for a meeting in Arnie Rutkin’s office. MargaretTravers, Joy, Arnie and others met to draft the mission statement for the AAML Foundation. During Joy’s year as President, the Board worked on the Foundation Brochure (Joan Kessler was extremely helpful with the design) and Joy began announcing the “DonSasserChallenge”at every CLE program. The “Challenge”— if Don joined as a lifetime member, then Joy’s husband, GregBrown, would become a lifetime member of the Foundation as well. Both Don and Greg joined. As always, Joy was irresistible!
During Joy’s presidency, it was decided that donations to the Foundation would be reported in the Academy newsletter. Further, each Foundation
Celebrating 20 Years!Celebrating 20 Years!the AAML FoundAtion
The AAML Foundation approved grant awards totaling $79,712 for 2012. The approved grants represent the largest annual amount
of grant funding by the Foundation to date. The generosity of AAML Fellows allows the Foundation to continue to fund worthy programs that assist families and children affected by divorce as well as educational programs and assistance to law students, lawyers, judges and related professionals in the field of family law.
Each year the Foundation receives a large number of applications from many worthy programs from across the country. The need is always greater than our funding ability.
After careful consideration, the Foundation is pleased to announce the following
2012 Grant Award Recipients:
n Bergen Family Center Engelwood, New Jersey
n Calm Waters Center for Children and Families Oklahoma City, Oklahoma
n Center for Children’s Advocacy Hartford, Connecticut
n The Children’s Law Center Winston Salem, North Carolina
n Clearfield Co. League on Social Services, Inc. Clearfield, Pennsylvania
n DePaul University, Chicago, Illinois
n Harriet Buhai Center for Family Law Los Angeles, California
n International Commission on Couple and Family Relations ICCFR Trust, Sheffield, England
n Kids’ Turn San Diego San Diego, California
n Kids’ Turn (San Francisco) San Francisco, California
n Law Advocates, Bellingham, Washington
n Lee’s Place, Tallahassee, Florida
n Leonard Loeb Scholarship
n Rainbows for All Children (dba Rainbows Itasca, Illinois
n Support Center for Child Advocates Philadelphia, Pennsylvania
n University of Missouri Kansas City School of Law (UMKC Law School), Kansas City, Missouri
n WINGS Program, Inc., Palatine, Illinois
n Yamhill County CASA Program McMinnville, Oregon
AAML Foundation Announces Grants for 2012
n Anita Rodarte delivering a grant award from AAML Foundation to Barbara Glessner-Fines UMKC Guardian ad Litem program.
AAmL foundation
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 5 | Fall 2011
— If you would like to make a contribution to the AAML Foundation, please contact —
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 6 | Fall 2011
Costa Rica has something for everyone, from hiking in rainforests and mountains, relaxing on beaches to snorkeling through tropical reefs and some of the best surfing in Central America.
Take in a massage to the sounds of nature.
Refreshing drinks in the midst of tropical gardens. Lush scenery surrounds the outdoor horizon pool, alongside the ocean.
Enjoy the scenery as you play golf on the rainforest and ocean side Costa Rica golf course.
Our resort/hotel is than two hours from Juan Santamaria International Airport, and ten minutes from the shopping, dining and nightlife in the pacific beach town of Jaco.
There is a variety of activities for kids of all ages.
Fun and relaxation for the entire family on the Pacific Coast.
AAML 2012 MidyeAr Meeting: PlayaHerradura,CostaRicaby Kenneth P. Altshuler, AAML President-Elect Portland, Maine
WhenIwascontemplatingmeetingsitesforthe2012midyearmeetingfortheAAML,IwouldoftenaskpeopleiftheyhadeverbeentoCostaRica.Theanswer,inevitably,was“No,butIhavealwayswantedtogothere!”Well the time has arrived! Family and friends will gather at the five star
Marriott Los Sueños in Playa Herradura, on the pacific coast of CoastRica,March11–15,2012. We have scheduled four “party buses” to leave the San Jose airport at intervals on the 10th for the trip to Los Sueños.
Not only will guests have snacks, “beverages,” and hands free travel to the hotel, but each bus will have a guide to provide you with the history and color of this unique country while you take the new national highway to the pacific coast.
Our welcoming reception will be at the Villa Caletas, located on a rainforest hilltop 1,150 feet above the Pacific Ocean, overlooking the Nicoya Gulf and the crescent beaches of Jacó. The 360-degree panoramic view is breathtaking and just a hint at what is in store for you the remainder of your trip.
n How about activities? Just a few things you can experience (in alphabetical order): Aerial tram, ATV tour, biking, bird watching, bungee jumping, butterfly farm, camping, canopy tour, canyon tour, catamaran tour, coffee plantation, crocodile safari, deep sea fishing, golf, hang gliding, hanging bridges, hiking, horseback riding, jet ski touring, kayaking, kite boarding, mountain climbing, national park tours, rock climbing, scuba diving, snorkeling, surfing, tennis volcanoes, waterfalls, white water rafting, and zip lines.
n Not in the mood for activities? No problem! Just rest and relax at the fabulous Marriott Los Sueños. With a world class spa and a friendly casino, you do not have to leave the grounds at all. Or how about a round of golf? But not just any round of golf. Ever play on a golf course in the middle of a rain forest? We can’t be responsible if one of the white eagles picks up your ball before you have a chance at that birdie putt!
n Hungry? Not a problem. You can enjoy one of the three hotel restaurants (La Vista, Nuevo Latino, Hoyo 19), the Casa del Café coffee house, or the Puesta del Sol pub. If you want to dine off site, you can either drive the few miles into the quaint town of Jacó, or walk across the lawn to the Los Sueños Marina, where you will find four wonderful dining opportunities, including El Galeón Restaurant, Lanterna Ristorante Itialiano, Bambu Sushi and Asian Cuisine, or the Dolce Vita Coffee and Sweets. And for nightlife, the marina also has the lively Hook Up (no, I did not make up the name of this restaurant and night club).
Plus the customary cocktail parties, top shelf CLE, and a little salsa dancing thrown in. This will be a trip of a lifetime, so bring the kids and grandchildren and be prepared for the PuraVida (pure life) of Costa Rica!
And to usher us into the 21st century, the AAML now has a website devoted exclusively to the 2012 Midyear meeting! That’s right! http://AAMLCostaRica2012 will detail all of the information you need to know about the hotel, restaurants, activities, shopping, golf (and, of course, the golf tournament!) and the meeting itself. So go to http://AAMLCostaRica2012 today and find out more about this exciting meeting!
endorse theUniformCollaborativeLawRules/Actas revised in 2010 by the Uniform Law Commission (formerly known as the National Conference of Commissioners on Uniform State Laws [NCCUSL]).
AAML/AICPA National Conference, 2012 by David Levy, Conference Chair Chicago, Illinois
I am pleased to tell you that the conference will be held at the new Aria Hotel at the fantastic rate of only $169.00 per night. The joint conference committee, including the AAML representatives CarolGailor Co-chair, JoyFeinberg,JimHennenhoefer,MiriamMason,MichaelStutman,RandyWilhite, and myself, have worked very hard with our AICPA brethren to put together a fabulous conference one that you surely don’t want to miss.
Simply stated, this will be the best CLE in the country in 2012. Among the myriad of interesting and educational sessions include: The Ten Most Important Rules of Direct and Cross Examination of CPA and Forensic Experts, the Impact of an Estate Planning on the Marital Estate in a Divorce, Valuing Assets Outside the United States and Using Uncle Sam to Find and Value Assets. We are also planning a session regarding ethical conundrums we all face
for those who may need to fulfill an ethics CLE requirement.
It is a sure bet (the only one in Las Vegas) that if you attend this conference you will be educated, entertained and glad you attended.
On behalf of the entire committee, we hope to see you there.
Honors H Michael Albano
MichaelAlbano was honored with the President’sAwardbytheMissouriStateBarAssociation.
H Mike GregoryMikeGregory, a member of the Texas Chapter of AAML, received the President’s Award in 2011 for OutstandingServicetotheTexasAcademyofFamilyLawSpecialists.
n David Levyn Robert E. Henley, IIIRichmond, Virginia
n Darcy E. LovelessDenton, Texas
n John F. Nichols, Sr.Houston, Texas
n Gregory R. NugentWashington, DC
n Christopher D. SzlichtaStillwater, Oklahoma
n Sam M. (Trey) Yates, IIIHouston, Texas
n Susan E. BayleNew Orleans, Louisiana
n Troy D. DeMuthLouisville, Kentucky
n Laura E. EisenbergBirmingham, Michigan
n Lorne B. GoldBloomfield Hills, Michigan
n Catherine S. HendrixColumbia, South Carolina
For those unable to attend the conference, a limited number of electronic copies of the materials on USB drive are available through AFCC by contacting ErinSommerfeld. Conference audio for conference sessions on BiasesandOpinionFormulationinChildCustodyDisputes and ChildDevelopmentandAttachment are available at no charge to AFCC members in the MemberCenter of the AFCC website. Complete conference audio is available for purchase through DigitalConferenceProviders.
assembledatChicago’sRenaissanceHotelJune23–26,2011,fortheannualAAMLInstituteforFamilyLawAssociates.Twenty-nine young lawyers in the Intro- ductory session and seventeen associates in the Advanced — all protégés of Academy members — participated in interactive lectures and presentations from Academy Fellow faculty, as well as in mentoring and break-out sessions.
Leading off the program, AAMLPresidentLindaLeaViken discussed the value, responsibilities, and benefits of Academy Fellowship, a theme of professional responsibility that received focus through-out the four-day program. Subject matter covered
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 8 | Fall 2011
AdvancedConceptsinChildCustody:Litigation,Evaluation,Settlement attracted a mix of lawyers, custody evaluators, judges and others from throughout the U.S. The program featured a mock trail, featuring lawyers KennethLester, Columbia, South Carolina; GuyFerro, New Canaan, Connecticut; psychologist RobinDeutsch, Boston, Massachusetts; and presided over by Hon.DiannaGould-Saltman, Los Angeles, California.
Three days of conference breakout sessions included coordinated presentations by AFCC and AAML representatives on parenting coordination, parental alienation, domestic violence, ethics, child development, interviewing children, psychological testing, bias, mental health consultation and relocation. Presenters from the AAML included President-ElectKenAltshuler,PastPresidentGaryNickelson,CatherinePeterson,RonTweel,MariaCognetti,JohnSlowiaczek,MaryVidas,SylviaGoldschmidt,TimothyTippins,CaryMogerman, and LouiseTruax.
The steering committee included Fellows GuyFerro,MariaCognetti,andKenAltshuler, and AFCC mem bers ArnieShienvold and AFCCPastPresidentBobSmith.
both office practice and trial issues, with emphasis on the importance of solid understanding of the founda-tions necessary to excel in both. Psychological testing, financial reports, tax returns, electronic evidence, QDRO’s were all part of the program.
Financial Research Associates members JayFishman and StacyCollins worked with both sections, providing a basis for business valuation and working with financial experts. Supporting these concepts were lectures on tax issues and on securing property divisions by SteveArnold, SylviaGoldschmidt, TomRies, RichardJacobs and TomSasser.
AAmL news in Brief
Psychologists PaulBerman and KathleenKilleen lectured and fielded questions on custody evaluations and testimony in an all day session with the advanced group. Students listened intently as both TomSasser and CaryMogerman presented solid advice on becoming a top-notch associate. CherylHepfer offered creative rainmaking suggestions with a practical emphasis on securing and retaining the loyalty of clients.
Meeting with associates throughout the day, mentors provide advice and guidance and lead further discussion of topics raised during the all day sessions. Each mentor group is comprised of an Academy mentor and four to five students. With discussions that begin at breakfast meetings and often continue past dinner to the hospitality reception suite, associates develop friendships that should follow them into the Academy when the time is right.
Co chairs RichardJacobs and TomRies report that the 2012 Institute will be held at the Renaissance Hotel in Chicago June 21–24; notices will be mailed to all Fellows in the fall and applications are accepted on a first-come, first served basis as received in the AAML office.
(Photos of Mentors and their Associate Groups continue on the following two pages.)
n Group Photo of Institute Faculty: AAML President Linda Lea Viken, right, met with faculty of the AAML Institute for Family Law Associates in Chicago June 22, 2011.
n Linda Lea Viken spoke with assembled students about the responsibilities and benefits of AAML membership.
Cloud Gate in Downtown Chicago
Liberty Bell Philadelphia, PA
AAML
AAML2011 institute for family Law Associates: mentors and Associates
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n BRENT CASHATT GROUP: Lindsey Cordes, Ben Sisney, Colleen Johnson, Brent Cashatt and Oni Seliski
n ELIZABETH LINDSEY GROUP: Jennifer Musika, David DeFazio, Elizabeth Lindsey and Cindy Batchelder
n PAUL REINSTEIN GROUP: Sheila Abbruzzese, Player Michelsen, Paul Reinstein, Kathleen Treadwell and Jennifer Brown
n RICHARD JACOBS AND PAT LASHER GROUP: Preston Drobeck, Terry Girolamo, Yasmine Mehmet, Pat Lasher, Tricia Susi, Amy Britt and Richard Jacobs
n CHERYL HEPFER GROUP: Valerie Tocci, Mary Novota, Ryan Babich, Cheryl Hepfer, and Maricela Meza
n CARY MOGERMAN GROUP: Randall Herriot, Kate Hummel, Stephanie Holder, Brandy Poss and Cary Mogerman
AAML
AAML
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 10 | Fall 2011
2011 institute for family Law Associates
n SANDRA LAX GROUP: Geoff Seufert, Sandy Lax, Michael Smith, Kelli Broers and Julia Haesemeyer
n TOM RIES GROUP: Tom Ries, Brittany Dyok, Jennifer Bradley, Bridget Howard and John Sugg
n STEVE ARNOLD GROUP: Aubrey Parlet, Victoria Brenner, Steve Arnold, Chris Hood, Laura Levy and Patricia Hass
n TOM SASSER GROUP: M. Shane Henry, Dari Horowitz, Ashley DiFilippo, Pamela Gamble and Tom Sasser
n SYLVIA GOLDSCHMIDT GROUP: Andy Scholz, Daniel Gold-Kessler, Sylvia Goldschmidt, Ashley Sawyer and David Hennessy
L eaders don’t create followers, they create more leaders.
— toM Peters
AAmL news in Brief
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 11 | Fall 2011
AAmL Chapter news
Florida Chapter Report
The Florida chapter will hold its Family Law Certification Review January 27 to 28, 2012, at
theLoews Royal Pacific Resort, Orlando.The 34th annual meeting will be heldat Rosen
Shingle Creek, Orlando, May 3 to 5, 2012.The Florida Winter Retreat will be November 29
to December 2, 2012, at theRitz Carlton in Bachelor Gulch, Colorado.
Illinois Chapter Report
On Columbus Day, October 10, 2011, the Illinois AAML Chapter held its annual all day
seminar at the Hyatt Lodge on the Oakbrook Campus of McDonald’s. This year the theme of the seminar was The Big Picture and A Big Buffet, Advanced Family Law 2011. Speakers included a number of AAML Fellows and guest speakers from across the country.
A variety of interesting topics were presented, in-cluding: n Advanced Mental Health Concepts: A Lawyers’
Guide to the DSM-IV-R and the Use and the Misuse of Psychological Evaluations in Litigation;
n Solving the Response Conundrum: Alienation—Responses that Work; and Impact of Divorce on Children: What we think we know, What we know, and What we need to do.
Kentucky Chapter Report
The Kentucky Chapter started this year with its annual meeting in February. At the meeting, of-
ficers were elected for a two-year term. The new officers are: n MelanieStraw-Boone, President n ValerieKershaw, Vice-President/President-Elect n LouisWaterman, Treasurern MarkOgle,Secretary
In April, the chapter held its annual seminar. This was the 14th Annual Kentucky AAML Family Law Seminar— the seminar is widely regarded as the best family law seminar in the state. The seminar was a sell out, with over 120 in attendance, including many from the Kentucky Family Court Bench.
The Chapter was honored to have AAML President LindaLeaM.Viken in attendance. Ms. Viken spoke to the group on the issue of “Ethical Conundrums.” In addition, JamesHennenhoefer and GordonCruse gave their dynamic presentation on Electronic Evidence and Discovery. Another topic presented at the seminar was “Dealing with Bullying in Schools.” The Chapter made a charitable donation to an anti-bullying organization, SPAVA, the Society for the Prevention of Aggressiveness and Violence among Adolescents.
Each year, at the annual seminar, the Chapter presents two awards: JudgeoftheYear and RaisingtheBar. The Chapter presented the Judge of the Year award to JudgeJoannWise, Fayette Family Court Judge. The Raising the Bar Award was presented to WilliamP.Mulloy, who was one of the founding members of the Kentucky Chapter.
(Minnesota Chapter Repor t continues on the next page.)
Minnesota Chapter Report
The Minnesota Chapter of the American Academy of Matrimonial Lawyers has facilitated
the institution of a pilot Moderated Settlement Conference program in four Minneapolis/St. Paul metro area counties.
The Moderated Settlement Conference Program (MSC) is a confidential, voluntary, evaluative process designed to facilitate dispute resolution in the later stages of family court matters. The program offers the evaluative impressions of experienced attorney- moderators (called MSC neutrals) to parties who still have custody, parenting time, and/or financial disputes and are headed for trial.
Judicial officers decide which cases are appropri-ate for this process, and, if the attorneys and counsel consent, a court order is signed notifying the parties of the date and time of the MSC.
The MSCs take place at the courthouse and are timed so that the assigned judicial officer will be available in the event the parties reach agreement on some or all issues. Those agreements are then placed on the record in open court. The judicial officers are available during the MSC to provide input if requested by the parties and their attorneys. Partici-pants are able to choose their MSC Neutral from a master list, mostly drawn from AAML membership, and the MSC neutrals are paid by the parties. The MSC is available to pro se parties as well as parties represented by attorneys. The MSC neutrals’ fees are determined by a sliding fee scale.
The pilot project was welcomed by both the bench and the bar because of the success of an earlier AAML/Minnesota pilot project, in which Academy
Financial issues were also addressed through such topics as: Divorce Tax 2011: n Practical Questions and Answers to Avoid
Malpractice, Identify Issues and Construct Tax Appropriate Resolutions;
n Evidentiary Issues Effectively Laying Foundations and Admitting Social Media, E-Mail, and Other Digital Evidence;
n Hiring and Firing: You mean you can’t ask that? What You Need to Know about Hiring and Firing Employees and Independent Contractors; and more.Fellows enjoyed a day off from court, great food
and a day’s worth of CLE credits including some all important Professionalism credits.
On November 3, 2011, the Illinois Chapter will be hosting a lunch for incoming PresidentKenAltshuler at the Witt Hotel, where there will also be a presentation on IPad apps for family lawyers.
On Martin Luther King Day, January 16, 2012, the Illinois Chapter, co-sponsored with the Illinois Institute of Continuing Legal Education and the Reznick Group, will present its annual Business Valuation, Financial and Tax Issues Affecting Divorce seminar. This is also an all day seminar concentrating on advanced valuation, tax and other financial issues we all face representing our clients.
AAML Fellows and guest speakers will present on a variety of topics in the all day seminar and vendors will be invited to display and demonstrate their products including exciting software and services of value to the legal community. The day is followed by a cocktail reception where we can all relax and socialize together. For more information see:http://aamlillinois.org/events.cfm.
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AAmL Chapter news
The joint kickoff event for Hennepin and Ramsey Counties was held on August 15 at Sweeney’s Saloon in St. Paul. The event was well attended by Academy members, other family law attorneys, and judicial of-ficers from around the metro area.
Earlier kickoff events were held in the Twin City metro counties of Washington and Anoka. Academy members are now working with other judicial districts in the Twin City metro area and in Greater Minnesota to assess interest in and implementation of this program.
Mountain States Chapter Report
The Mountain States chapter of the AAML held its Annual Meeting at the historic Wort Hotel in
Jackson, Wyoming on Saturday, June 11, 2011. Thirteen Fellows and their spouses and guests from
four states attended the festivities. Prior to the annual meeting, the Fellows met for two days of continuing education and social functions. A Welcome Reception was held Thursday evening at the National Museum of Wildlife Art, hosted by outgoing President JohnA.Thomas and his wife, Kimberly. A hosted Chapter dinner was held Friday evening for all attendees.
At the Annual Meeting on Saturday, the following members were elected as officers: n JeffreyR.Christenson, of Idaho, President n StanleyW.Welsh, of Idaho, President-Electn DenaSarandos, of Utah, Secretary/Treasurer n JohnA.Thomas, of Wyoming,
ImmediatePastPresidentJohnSlowiaczek, a Nebraska Fellow and
Vice-President of the National AAML, attended and gave a report of matters of importance to the national organization.
New Jersey Chapter Report
On June 11, 2011, the New Jersey Chapter held its Annual Black Tie Dinner Dance for the
installation of officers. President LindaLeaViken was invited to New Jersey to swear in New Jersey officers:n MadelineM.Marzano-Lesnevich, President n AmyC.Goldstein, Secretary n BruceE.Chase, Treasurer n RobertJ.Adinolf,VicePresident n JohnP.Paone,Jr., President-Elect
CaryB.Cheifetz, First Vice President was unable to join in the festivities. President Viken also welcomed and swore in three newly admitted New Jersey Fellows, CharlesF.Vuotto,Jr.,SherylJ.SeidenandCarolynN.Daly.
On November 19, 2011, the New Jersey Chapter will hold its Annual AAML Law Forum, at which California Fellow and former President of the AAML, JamesA.Hennenhoefer, together with GordonCruz, will present on Electronically Stored Information. Also presenting will be fellow South Carolina Fellow CaroleGailor on the admissibility of ESI. Fellows from neighboring states are invited to attend.
North Carolina Chapter Report
Each spring, the North Carolina Chapter presents a cash award to a worthy law student at the
various law schools in North Carolina, in recognition of that student’s contributions to the advancement of matrimonial law. This year, the North Carolina chapter presented the following student awards:n CampbellUniversitySchoolofLaw Paula Etheridge Murrayn TheCharlotteLawSchool Lesley Keithn ElonUniversitySchoolofLaw Kelly Rothn UNCSchoolofLaw Leah D’Aurora Richardsonn WakeForestUniversitySchoolofLaw Amanda L. Pry
Ohio Chapter Report
The Ohio Chapter’s Annual Symposium on Family Law was held October 9 and 10, 2011,
in Columbus, Ohio. The Chapter has renamed the Symposium for our beloved colleague and long-time Fellow of the Academy, HaroldR.Kemp, who passed away this year. The Symposium will feature nine hours of CLE and draws more than three hundred lawyers annually from around the State of Ohio. Among the scheduled speakers is the Chief Justice of the Ohio Supreme Court.
Joining the Chapter this year at the Symposium was National AAML President, LindaLeaViken. Linda Lea visited Columbus to meet with the Chapter and to open the Symposium. We looked forward to her visit. The Chapter was fortunate to also have Past President MarleneMoses visit with us at the Symposium weekend last year.
The Symposium generates Chapter revenue which, in turn, results in charitable contributions. Last year the Chapter made $42,500 in contributions and an equal amount will again be contributed to several Ohio legal aid and defender societies and to the National AAML Foundation.
The Chapter held its annual retreat in June at the Prince of Wales Hotel in Niagara-on-the-Lake, Ontario. Chapter President AmyWeis led the Chapter on a weekend of great discussion and fellowship.
Pennsylvania Chapter Report
The Pennsylvania Chapter had a very successful 2011 Summer Meeting at the Sagamore Resort
in Lake George, New York. In addition to a produc-tive semi-annual business meeting, the Chapter was entertained by Jim Snack of the Humor Project.
At that meeting, the new slate of Chapter Officers were elected, made up of:n RobertWhitelaw,Presidentn DavidHofstein,President-Electn MaryVidas,Vice-President:n StevenHurvitz,Second Vice-Presidentn CharlesMeyer,Secretaryn DavidPollack,Treasurer
(Pennsylvania Chapter Repor t continues on the next page.)d
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 13 | Fall 2011
AAmL Chapter news
Also, at that meeting, the Chapter hosted a cocktail party for prospective fellows, to educate attorneys with respect to what the Academy is and does, and the meaning of Fellowship. The event was well-attended and well-received.
Finally, the Pennsylvania Chapter was a sponsor and integrally involved with the development of a joint program with the Association of Family and Conciliation Courts (AFCC) entitled “Advanced Issues in Child Custody: Evaluation, Litigation and Settlement.” The program was held September 15 –17, 2011, in Philadelphia. Pennsylvania.
Chapter Fellow and AAML National Vice-President MariaCognetti served on the Planning Committee for the program and as a speaker on “Psychological Testing in Custody Litigation.” Pennsylvania Chapter Vice President MaryVidas was a speaker on “Legal and Psychological Perspectives on Child Relocation.”
Southern California Chapter Report
The Southern California Chapter, comprised of 92 Fellows, meets six times per year at the
Balboa Bay Club in Orange County, which is roughly equal distance from Los Angeles and San Diego. In addition, we have a three-day Trial Institute attended by approximately 300 people, and a Chapter Retreat held each year. The Retreats are social and educational in nature, held at a location within driving distance from Los Angeles one year and at another location throughout the country the following year.
The Southern California Chapter of the AAML will present its 19th Annual Trial Advocacy Institute, entitled “Case study Institute, San Diego,”an in-depth study of a family law case from initial intake through appellate review. We are honored to have, as two of our distinguished guest speakers, AssociateJustice MingW.Chin of the California Supreme Court and JusticeDennisA.Cornell of the California 5th District Court of Appeals.
The three day event will take place in San Diego at the exclusive Grand Del Mar from January 13–16, 2012. For more informationemail NancyTaylor at aaml2012institute.com or go online www.aamlsocal.com.Our schedule of upcoming events include:
n 2012TrialInstitute
place: The Grand Del Mar San Diego, California
dates: Friday, January 13 to Monday, January 16, 2012
n 2012NationalMid-YearMeeting
place: Costa Rica
dates: Saturday, March 10 to Thursday, March 15, 2012n 2012ChapterRetreat
place: Miramonte Resort & Spa Palm Springs, California
dates: Thursday, May 17 to Sunday, May 20, 2012
South Carolina Chapter Report
The South Carolina Chapter is pleased to announce the establishment of the HarveyL.Goldenand
HeideE.GoldenScholarship at the University of South Carolina School of Law.
This scholarship was established to honor the memory of our long time Fellow, often referred to as the “dean” of South Carolina family law, and was initiated with $31,000 in contributions of Harvey’s widow Heide (wife of 44 years) and Chapter Fellows KenLester and PamDeal.
Among his many distinctions, Harvey served on the AAML Board of Governors and was a Fellow (and Treasurer) of the International Academy of Matrimo-nial Lawyers. He was the second member of our state AAML chapter and served as its first president for four years. For those of you who did not have the privilege of knowing Harvey and would like to know more about his extraordinary practice of family law for more than fifty years before his death in September 2006, I invite you to review a copy of his obituary and especially the remarks made in his memory at the 2007 meeting of the ABA House of Delegates, at the following links, respectively: http://archiver.rootsweb.ancestry.com/th/read/GOLDING/2006-09/1158700192 andhttp://www.americanbar.org/content/dam/aba/publish-ing/family_law_enewsletter/feb07golden.authcheck-dam.pdf. The scholarship will be restricted to law students attending the USC School of Law and emphasizing a practice in family law.
To make a tax deductible contribution please make your gift payable to USC Foundations (noting in the memo section “Harvey L. Golden & Heide E. Golden Scholarship”) and mail it to the University of South Carolina School of Law, Office of Development,
701 S. Main Street, Suite 202, Columbia, SC 29208. Thank you in advance for your contributions!
The Chapter wants to recognize the election of one of our [former] Fellows to the Family Court, 13th Judicial Circuit in Greenville, South Carolina. W.MarshRobertson has been a member of the South Carolina Bar since 1988, and served on the Family Law Council of the Bar from 1998 to 2001. He became a Fellow in the Academy in 1999. While in private practice Judge Robertson was rated “AV” by Martindale-Hubbell, and was selected for inclusion in the 2008, 2009, and 2010 editions of SouthCarolinaSuperLawyers. He participated as a lecturer in a number of Continuing Legal Education seminars for the South Carolina Bar, including the annual “Hot Tips from the Best Domestic Law Practitioners.” Judge Robertson also served as an editorial board member for Stuckey,MaritalLitigationinSouthCarolina:SubstantiveLaw, 3rd Edition, 2000, and Stuckey,MarriageandDivorceinSouthCarolina:ALayperson’sGuide,2001. It is a pleasure for us to appear before Judge Robertson in his courtroom, but we miss having him and his lovely wife at our gatherings!
The Chapter also recognizes the involvement of our Fellows with both of South Carolina’s law schools. Fellow KenLester is serving as a mentor for a small group of 2011 first year law students at the University of South Carolina School of Law. According to JohnH.Montgomery, Dean and Professor Emeritus, this “newcourseisdesignedtogiveenteringlawstudentsabroadoverviewofthelegalprofession,includingwhatlawyersdo,whatitmeanstobeaprofessional,theimpor-tanceofprofessionalism,work-lifebalance,andthelaw-yer’sspecialobligationstotheprofession.”
Fellow DianeCurrent has been an Adjunct Professor at the Charleston School of Law since 2008, providing instruction in Family Law and Advanced Domestic Relations.
n Banchefskyv.Banchefsky Ohio, Decided September 9, 2010 2010 WL 3527578 (Ohio App.)
This case involved the valuation of a solo dental practice, Eastside Family Dental, Inc. During the
course of the divorce proceedings, Dr. Banchefsky sold his dental practice for $580,000. Prior to the transaction, the parties had agreed to modify the temporary restraining order that had been in place, in order to allow the husband to sell. The asset purchase agreement specifically included an allocation of the purchase price as follows:— Dental and office furniture was assigned a value of $126,000— Dental supplies were valued at $3,000— Patient records were given a value of $20,000— A covenant not to compete had a value of $15,000, and — “Goodwill” was allocated $416,000 of the purchase price.
The husband engaged an expert in the divorce to quantify how much of the $416,000 related to personal goodwill, such that it may be excluded from the marital estate. That expert apparently reviewed a business appraisal done prior to the sale, as well as
Good Counsel | Go Figure, an ongoing column by Financial Research Associates
(Ar ticle continues on the next page.)
the asset purchase agreement and other information. In addition, Dr. Banchefsky was asked to complete a “self-reporting goodwill questionnaire and professional background questionnaire.” The expert concluded that the assigned value of $15,000 for the covenant not to compete was arbitrary, and the actual value of the non-compete was $215,500, including personal good-will. In order to come to that conclusion, the expert applied the Multi-Attribute Utility Model (“MUM”) espoused by David Wood for allocating personal ver-sus enterprise goodwill.1
While the trial court did acknowledge the possible “utility” of MUM, it was considered unnecessary as there was an actual arm’s length transaction — the sale of the Practice. Accordingly, the court concluded there was separate property of $15,000 relating to the stated value for the covenant not to compete.
In addition, the court found that the husband “unilaterally” decided to sell the practice, and was voluntarily unemployed after the transaction. Accordingly, the court imputed income to the husband based on averaging three years of earnings prior to the sale of the practice. These findings were upheld on appeal.
n Nuveenv.Nuveen North Dakota, Filed March 22, 2011 2011 ND44
This case involved valuation of an orthodontist’s practice in Grand Forks, North Dakota. The
practice was a Sub Chapter S corporation owned by a solo shareholder.
Initially, the parties jointly retained a valuation expert, a business broker specializing in sales of dental practices. However, the husband ultimately retained his own expert, a “certified appraiser,” because he disagreed with the conclusions reached by the joint
n Stacy Preston Collins
The View from fiVe STaTeS:
Goodwill in a Dental Practice
by Stacy Preston Collins, CPA/ABV, CFF Financial Research Associates
appraiser. Both experts agreed that the Practice was “stable and highly profitable” but differed in their conclusion as to its value.
The joint expert concluded the value of the Practice was $1,008,570 excluding cash assets and excluding liabilities/debt of the Practice. The husband’s expert opined at trial that the value of the Practice was $433,419, excluding cash but net of liabilities. The court ultimately concluded the value of the Practice’s stock (net of liabilities) was $629,717.
Dr. Nuveen acquired his Practice in 2003, but there were disagreements as to the price paid. The husband argued the price was $350,000 and the wife, $650,000. The reason there was a difference is that there was a consulting agreement to the seller for $100,000 and a non-compete agreement with an allocated value of $200,000. The wife argued both should be considered part of the purchase price and husband disagreed. When the trial court ruled that value for purposes of the divorce was $629,717, it concluded that value was about $20,000 less than the amount paid previously.
The court ultimately found the husband’s expert appraisal to be more persuasive, in part because it was performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and because that expert used the 2003 purchase price in his valuation. In contrast, the other expert did not follow Revenue Ruling 59-60 and did not use the 2003 transaction, which was viewed by the court as a “truly comparable sale” that was arm’s length. That expert concluded that the intangible value had more than doubled since the purchase. The court was not swayed because of the relatively short time span since the practice had been purchased, and the fact that in
Good Counsel | Go Figure, an ongoing column by Financial Research Associates
the years since the transaction there had been a flat economic climate in the area.
The court ultimately eliminated the husband’s expert’s 12% discount for lack of marketability, apparently because of concerns that the discount was applied to all tangible assets including cash and “already discounted accounts receivable.”2 These issues were upheld on appeal.
n InReMarriageofBruns Iowa, Filed January 20, 2011 2011 WL 237969 (Iowa App.)(unpublished)
The parties in this case were married for 40 years. The husband purchased his dental practice in
1980, for approximately $75,000 to $78,000. In the
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 15 | Fall 2011
had paid 30 years prior to acquire the practice. The husband testified that he would not sell his practice for $77,000, presumably because that value was too low. On the other hand, the court apparently felt it necessary to discount the value reached by the wife’s expert, “based on her more limited experience in appraising dental practices and her opinion that the existence of a non-compete agreement would make no difference in the valuation.”
The court opined that the value of the practice was $115,450. This value was upheld on appeal.
n InReMarriageofMcReathv.McReath Wisconsin, Decided July 12, 2011 2011 WL 2706249 (Wis.)
In 1996, Dr. Timothy McReath purchased an orthodontic practice for $930,000 from an-
other solo practitioner. At the time, approximately $100,000 of that value was allocated toward physical assets, the corporate name and corporate goodwill. The remaining $830,000 in value related to the seller’s name, a non-compete and an employment agreement by the seller to transition the business to the buyer.
The purchase included two offices in Wisconsin, which were the only orthodontic practices in those two towns. The Practice’s “conversion ratio” (meaning the proportion of new patients that remained with the practice after an initial visit) was substantially above the industry average. In the five years leading up to the valuation, the husband’s cash flow averaged approximately $698,000 a year based on 50 to 70 hours a week of work, higher than the industry norm.
The husband’s expert valued the practice, known as Orthodontic Specialists, at $415,000. The wife’s expert valued the practice at $1,058,000. The wife’s
years leading up to the divorce, he worked 3½ days per week and earned about $150,000 per year. He had three employees, “including a receptionist whom he was dating,” according to the published opinion.
The husband engaged a consulting/business broker to appraise his dental practice. The wife engaged in accredited senior appraiser who previously worked on several dental practice valuations.
The husband’s expert valued the practice for $77,000 as of May 2009; the wife’s valued it at $241,000. The wife’s expert included an adjustment in the valuation to reduce the receptionist’s wages, because they were considered to be higher than market value.
At trial, it was noted that the husband’s expert’s value was very close to the price that the husband
(Ar ticle continues on the next page.)
expert’s value included $247,000 of tangible net asset value and $811,000 of goodwill.
The court ultimately agreed with the wife’s expert on value. The court further found that most of the goodwill was professional, not corporate in nature. However, it was considered a marital asset, because it was “saleable professional goodwill.” The husband’s value was rejected in light of the purchase price for the practice back in 1996 and the consistently high trend of earnings.
The court reflected on the fact that the husband bought the practice for $930,000 and that he, like any buyer, would have insisted on a non-compete agreement. The husband admitted at trial that he could sell the practice for about $1 million. The court concluded that a non-compete could effectively transfer substantial portion of the goodwill to the buyer. Because of this, the goodwill was considered a marital asset.
In July 2011, the Supreme Court of Wisconsin affirmed this conclusion, saying that “in some situations personal goodwill is saleable.”
The trial court considered $465,000 of income for support purposes. This was based on the five year average historical income, reduced to an estimated level of income using a 40 hour work week. The husband argued that there had been a “double dip” by considering these earnings both in the valuation and for maintenance.
However, the court was not persuaded. The Supreme Court noted that if Dr. McReath chose, he could have either sold the practice, or retained the practice and continued to earn income from it. The court concluded the following:
AAmL news in Brief
AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 16 | Fall 2011 AmEriCAn ACAdEmy of mAt ri mo niAL LAw yErs | 16 | Fall 2011
Good Counsel | Go Figure, an ongoing column by Financial Research Associates
Tim has the option of continuing to generate substantial income from Orthodontic Specialists without diminishing its value. Specifically, the Circuit Court found that if Tim works 40 hours per week, Tim’s income will be $465,000 annually. As with income from an income-producing asset, this income is separate from the value of orthodontic specialists as it existed at the time of the property division. Consequently, the Circuit Court did not double-count orth-odontic specialists, professional goodwill, and, therefore, did not erroneously exercise its discretion when it awarded Tracy $16,000 per month, for 20 years, in maintenance.3
The court found that there was no existing rule precluding this type of award and therefore did not overturn the ruling.
n McKeev.McKee Tennessee, Decided August 17, 2010 2010 WL 3245246 (Tenn. Ct. App.)
The McKee case in Tennessee provides an interesting parallel to the McReath decision in
Wisconsin. The wife’s dental practice was addressed at trial. She started the practice in 1983 as a solo practitioner. By 2005 there were three equal partners in the practice. In that year, the third dentist bought into the practice for $749,000. In that transaction, 45% was allocated to personal goodwill for the two existing owners and 34% was allocated to patient files and records.
In this case, both experts agreed that personal goodwill was to be excluded and “business” goodwill was to be included in the valuation of the Practice. The wife’s expert valued the practice for divorce purposes at approximately $97,000. This excluded any value for goodwill or patient records. The wife’s expert indicated that there should be no value allo-cated to patient records because there was no value to them without a “professional providing the service.”
Therefore, the expert viewed the patient records as an extension of personal goodwill.
The husband’s expert considered the prior transactions in the appraisal for the divorce. He included the patient files in the valuation, as was done with the two prior buy-ins to the practice. The husband’s expert testified that he did not know how the allocation of value was derived in the 2005 pur-chase price but that it appeared reasonable. However, at trial he indicated the files had no value without a non-compete agreement.
Ultimately, the court found for the wife’s expert value of $97,000 and that the patient files would not have any value without a non-compete.
Summary
It is fascinating how differently courts in five different jurisdictions view the valuation of a dental/orthodontist practice and the treatment of goodwill, especially given the relatively short timeframe in which all these rulings were rendered. Interestingly, prior transactions involv-ing the subject practices were a common theme in every one of these rulings. This shows that these types of practices are often bought and sold, though the terms of the deals certainly vary, as do the way courts treat them in establishing value for purposes of divorce.
1. See, for example, the article in the American Journal of Family Law, Fall 2004, “An Allocation Model for Distinguishing Enterprise Goodwill from Personal Goodwill.”
2. The reasons the discount was rejected are not noted in the State Supreme Court opinion. These details were noted in the Appellee Brief of Elizabeth Ann Nuveen, located at http://www.ndcourts.gov/Court/Briefs/20100134.aeb.htm.
3. See paragraph 61 of Supreme Court opinion.
Stacy PreSton collinS, cPa/aBV, cFF is a Managing Director at Financial Research Associates www.finresearch.com, a firm specializing in valuation, forensic accounting and litigation support. She has provided expert witness testimony in several states and is one of the co-authors of FinancialValuation:ApplicationsandModels, Third Edition, and is a contributing author to the FamilyLawServicesHandbook. Ms. Collins is immediate past Chair of the AICPA’s Family Law Task Force and is a frequent speaker and author on valuation and related topics. She has participated in the AAML Institute for Family Law Associates for each of the last several years.
n ARTICLE SUBMISSIONS (see back cover): You can submit your electronic articles to: Co-Editor, KEN ALTSHULER > [email protected]
n PHOTOS FOR PUBLICATION: Your photos are also welcome; high-resolution, jpg format is preferred. Photos from meetings and gatherings should include ID information. Send jpgs to: Co-Editor, CHERyL LyNN HEPFER > [email protected]
n In addition to local Chapter News, the newsletter committee welcomes articles of person al and human interest, along with educa tional articles pertinent to our profession. If you have a special interest or know ledge in an “extra-curricular” field, please consider sharing your enthusiasm in the AAML newsletter.
The AAML is appreciative of the efforts of r.C. Auletta and Company, and our liaison, Brian downey, for generating media attention on the Academy.
This newsletter is published to inform our Fellows and friends about social events enjoyed by the Academy and current issues of importance in the field of Family Law. The materials presented in this newsletter should be viewed only as a summary of Academy events. Any topic discussed herein should not be construed as legal advice or the formation of
a lawyer/client relationship. Legal counsel should be sought for answers to specific legal questions. The opinions expressed herein are the opinions of the individual Fellows and are not necessarily the opinions of the
American Academy of Matrimonial Lawyers (AAML) or any of its Chapters.
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