And you thought you were paying support…

A fun story about a New York wife who needs $53,000 – per week! – in support from her husband, the former United Technologies chairman George David. Well, she’s a countess, after all.

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Now I’ve Heard It All

A recent news item by Jen Chung on Gothamist reports that a New York doctor is demanding that his estranged wife return the kidney he donated to her during their separation…. or pay him its value of $1.5 million.

Newsday reports that Batista married wife Dawnell in 1990 and that he donated the kidney in 2001. According to Batista, their marriage was on the rocks then, but “My first priority was to save her life. The second bonus was to turn the marriage around.” Dawnell Batista filed for divorce in 2005. Dr. Batista told
WCBS 880
, “She had an affair, then would not reconcile, then handed me divorce papers as I was going into surgery trying to save another person’s life.

My question is, how did Dr. Batista determine the value of the kidney?

Mercer Capital Publication: Buy-Sell Agreements

A recent edition of Value Matters, a periodical published by Mercer Capital Group, illustrates the reasons for having a buy-sell agreement and what options might be available. Buy-sell agreements are advisable for the same reason as prenuptial agreements: they structure the consequences of a possible future incident such as shareholder disharmony, death, or divorce.

The valuation provisions of a buy-sell agreement, which may dictate the share price in the event of partner withdrawal, death or divorce, must reconcile competing concerns. On one hand, a book value formula might be desirable in the event of divorce or the buyout of a withdrawing shareholder. On the other hand, a below-market share price may result in excessive estate taxes for the beneficiaries of a deceased shareholder. An agreement can provide different formulas for different situations, but must presumably reconcile those inconsistencies or suffer close scrutiny of the courts or IRS.

Trigger events, valuation method, and purpose are some of the important elements of a successful buy-sell agreement. Extensive details are provided, presumably, by Chris Mercer’s book, Buy-Sell Agreements.