Message-ID: <37681980.EF72C043@calweb.com>
Date: Wed, 16 Jun 1999 14:39:13 -0700
From: "Hamid A. Wasti" <hwasti@calweb.com>
To: lancair.list@olsusa.com
Subject: Re: Valuation of IV
References: <3.0.3.32.19990616161446.00afd2a0@olsusa.com>
Mime-Version: 1.0

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> Your wife's lawyer will use
> TAP or any other source that will value the plane as high as he can,
> especially if he knows you intend to keep the plane.

Just like the assets have to be split down th middle, so do the liabilities.
By letting you keep the plane while she keeps the money (50% of whatever value
you agree to) she is totally walking away from the liability of a future
lawsuit that arises out of actions (building the plane) that were taken while
you were still married.  The valuation of the plane in today's dollars must
reflect that.

The only way you can sell the plane with minimal liability for building it is
to sell it for parts where the plane will never ever be built or flown.  That
puts the value of the plane significantly below the cost of the kit.

> You will probably have
> to negotiate for the lowest price he will agree to, or he will insist that
> you put the plane up for sale and split the proceeds.

So, try and sell it.  If they are asking for an unreasonable amount of money,
it will never sell, which is proof enough that the price is unreasonable.  They
can not claim that it is worth $200,000 but when you get an offer for $50,000
demand that you sell it for that price but still pay them $100,000 for their
share.  Plus, the day the plane goes on the market, you can reasonably start
billing them 50% of the cost to store it plus 50% of the fair value of the time
you spend building it.

Best of luck with this.  It must be a difficult period for you.

Hamid


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