Judges are frequently confronted with deciding expected and reasonable returns from an investment portfolio. Take a deep dive into the case law surrounding the application of rates of return to portfolio holdings and explore different approaches that have been used to develop and defend rates of return; the historical returns of markets; and studies that capture the historical returns of different investor groups. Also address the variables that have an impact on the returns expected and actually achieved by different investor groups and why knowledge of these is important to reaching a reasonable recommendation in marital dissolution matters. The recent Lugge case will also be discussed. What is the impact of an assumed 6.5% portfolio return on marital assets distributed to the wife in this matter? What are the stated versus implied assumptions embedded in this rate? How does this rate differ from the rate applied to the husband’s assets?
Credits: 0.5 General, 0 Diversity/Inclusion PR, 0 MH/SA PR, 0 Other PR
Carlton R. Marcyan, CPA, CFP,MBA, MCR (in progress), Schiller DuCanto & Fleck, LLP, Lake Forest
Brandi L. Ruffalo, MBA, CVA, CBA, Valuation & Forensic Partners, LLC, Schaumburg