Bill > H1200

This bill proposes to amend Section 34 of Chapter 208 of the General Laws, which deals with divorce proceedings, by adding a new sentence to clarify how the value of a professional corporation should be determined when dividing marital assets. Specifically, it mandates that courts must value such a corporation using the "willing buyer and willing seller" standard, meaning the price it would fetch on the open market between informed parties who are not forced to make the transaction. Furthermore, the bill requires courts to consider and allow for "key man and marketability discounts," which are adjustments to the valuation that account for the loss of a crucial individual within the practice and the difficulty in selling such a specialized business, respectively.