Motel Has $200K Value | No Expert Required in TN Divorce
Tennessee business valuation law case summary – Motel. Tennessee divorce and family law from the Tennessee Court of Appeals.
Stinnett v. Ferguson – Tennessee Divorce Business Valuation – Motel
Sharon Stinnett and David Ferguson were married in 1992. Prior to the marriage, they had discussed plans to buy Dock’s Motel in Townsend, TN, which was then owned by Ms. Stinnett’s mother. At the time, the property was a 13-unit motel with an office/residence, some rental trailers, and a farm house and rental lodge. Prior to the marriage, Mr. Ferguson began construction of some cabins on the property. The property was sold to Ms. Stinnett about two months prior to the marriage, and the cabins were completed in 1993. The parties separated in 1996. The purchase price was $221,300. Mr. Ferguson testified that he had invested $247,000 for the materials for the cabins. He introduced a written appraisal showing a value of $575,000. There was a mortgage on the property in the amount of $190,000.
The trial court held that the marital equity in the property was $200,000. The motel was awarded to Ms. Stinnett, and Mr. Ferguson was entitled to $100,000.
On appeal, Mr. Ferguson argued that since he had presented the only expert opinion as to value, the trial court should have accepted that opinion. However, the Court of Appeals noted that a court is not required to accept an expert opinion, even if no competing opinion is offered. Since the evidence did not preponderate against the trial court’s finding, the Court of Appeals affirmed the valuation of $200,000.
No. E2001-02031-COA-R3-CV (Tenn.Ct. App. Mar. 22, 2002).
See original opinion for exact language. Legal citations omitted.
To learn more about Tennessee business valuation law, see Business Valuation in Tennessee Divorce Law. To learn more about the division and valuation of professional practices in divorce, see When Professionals Divorce in Tennessee: Valuing Professional Practices.
Miles Mason, Sr. JD, CPA handles complex divorce matters including business valuations and forensic accounting issues. View his professional biography listing books and articles published on business valuation and forensic accounting and seminars presented to lawyers, judges, business valuation experts, and forensic accountants. Miles Mason, Sr. authored The Forensic Accounting Deskbook: A Practical Guide to Financial Investigation and Analysis for Family Lawyers, published by the American Bar Association. The Miles Mason Family Law Group, PLC’s offices are located in Memphis, Tennessee and serves West Tennessee and Nashville. Contact Us today at (901) 683-1850.
