Marriage of Micalizio
Court of Appeal of California
199 Cal. App. 3d 662 (1988)
Robert Micalizio (plaintiff) and Gerry Micalizio (defendant) married in 1971. Before the marriage, Robert had purchased stock in his employer, a closely held corporation, financed with promissory notes that the community later helped pay down. Robert's shares were subject to a buy-sell agreement requiring him to offer them to the company before any sale. At trial, an officer of the company testified the shares would be worth about $25 each in liquidation, and the court initially valued them near $13.67 per share, then split them in kind. After trial, Gerry learned of an unrelated 1984 amendment restricting transfers and moved for a new trial; the court then valued the shares at $25 each and ordered Robert to pay Gerry a promissory note for the value of her share. Robert appealed.
Whether the valuation of closely held stock must account for a variety of factors bearing on the value of the shares, rather than resting on an expert's bare conclusion.