Barton v. Barton

Summary

The Georgia Supreme Court held that, in valuing a closely held corporation for equitable division of marital property, a court is not bound by the buy-sell price in a shareholder agreement that was not signed by the non-shareholder spouse. The court affirmed the property division based on the stock's fair market value and dismissed the wife's cross-appeal regarding alimony.

Holdings

1. A court valuing an ownership interest in a closely held corporation for equitable division of marital property is not bound by the price specified in a buy-sell agreement that was not signed by the non-shareholder spouse. The agreement price may be considered along with other factors in determining value.
2. The arbitrator properly valued husband's Triad stock at $508,000 rather than being bound by the $342,200 formula price, and the division of marital property was affirmed.

Questions Presented

1. Whether, in valuing stock of a closely held corporation for purposes of dividing marital property in a divorce, the court is bound by the value specified in a buy-sell provision of a shareholder agreement that was not signed by the non-shareholder spouse.
2. Whether the superior court erred in adopting the arbitrator's division of marital property based on a fair-market valuation of the stock.
3. Whether wife's cross-appeal concerning alimony remained at issue after she withdrew it.

Disposition

affirmed