Mantai

DISCUSSION

Valuation and Characterization of the Business 1. Valuation Date In a marital dissolution, Family Code section 25505 requires trial courts divide a community estate equally. Section 2552, subdivision (a) instructs courts to value community assets “as near as practicable to the time of trial.” (§ 2552, subd. (a).) An exception exists where good cause demonstrates an earlier valuation date is necessary to “accomplish an equal division of the community estate.” (Id., subd. (b).) Applying the exception may be proper “‘when the hard work and actions of one spouse alone and after separation, greatly increases the “community” estate which then must be divided with the other spouse.’” (In re Marriage of Priddis (1982) 132 Cal.App.3d 349, 355.) “[G]ood cause generally exists for a professional practice to be valued as of . . . separation” (In re Marriage of Duncan (2001) 90 Cal.App.4th 617, 625) but section 2552, subdivision (b) confers broad discretion on trial courts to value property on the date most appropriate to accomplish an equitable division of property. (Ibid.) The court must only find “good cause” to value an asset on an alternate date; it is not

4 The other issues…