Contact: 205-716-7000

Contact: 205-716-7000

Active Passive Appreciation – Determining WHY Value Changed

An FCG Member-Exclusive Webinar with Bill Dameworth

When the financial elements of a divorce involve closely held businesses, real estate portfolios, or other appreciating assets brought into a marriage, things get complicated fast. One of the most critical (and often misunderstood) areas in divorce valuation is the active passive appreciation analysis.

To help professionals deepen their understanding of this important topic, Bill Dameworth will lead an exclusive webinar for members of the Financial Consulting Group (FCG), as part of the FCG Member-Exclusive Webinar series. The session will walk through the process of performing an active passive appreciation analysis and how differing state statutes can significantly impact the outcome.

What the Webinar Covers

This session isn’t just an overview. It’s a practical, detail-rich walkthrough designed for valuation and litigation professionals who need to apply these analyses in high-stakes matters. Bill will explain how active passive appreciation is handled across various U.S. jurisdictions, what elements are typically involved, and how varying state laws can affect the approach and conclusions.

The discussion will be anchored by a case study drawn from real-world experience. It will incorporate many of the variables professionals face in complex divorce cases—such as appreciation of premarital assets, efforts made during the marriage that affect value, and how courts differentiate between active and passive forces driving appreciation.

Why It Matters

Divorce valuation outcomes often hinge on whether an increase in the value of a separate business brought into a marriage is categorized as having been caused by active or passive factors. If the increase is due to market forces (passive appreciation), it may remain separate. But if the value increase was caused by the effort, skill, or reinvestment by the divorcing parties during the marriage (active appreciation), it may be subject to division.

The problem? Each state handles this differently.

That’s where professionals get tripped up—and why this training is essential. Beyond specific formulas, many jurisdictions require an in-depth narrative analysis supported by expert opinion and case law. States vary as to whether one divorcing party or the other must show the source of the appreciation, and the burdens of proof can shift among the divorcing parties depending upon the stage of the divorce case. This webinar explores these differences, so practitioners can adapt their analysis depending on the jurisdiction.

Key Topics Bill Will Cover

  • Overview of U.S. Statutory Regimes: How divorce laws across the country impact the treatment of active vs. passive appreciation
  • Core Elements of the Analysis: What a credible active passive analysis typically includes, regardless of location
  • Jurisdictional Comparisons: Examples of how outcomes can differ based on state statutes and case law
  • In-Depth Case Study: A complex scenario featuring assets and elements typically found in high-net-worth divorces
  • Current Thought Leadership: A review of professional literature and treatises guiding best practices in this space

Who Should Attend

This webinar is exclusively available to members of the Financial Consulting Group (FCG), a national association of business valuation and litigation support professionals. It’s part of the FCG Member Exclusive Webinar series, which delivers practical, topic-specific content on a regular basis for FCG members. 

If your work includes business appraisal, litigation consulting, or financial forensics in divorce contexts, this session will offer immediate value.

About the Speaker

Bill Dameworth is a seasoned valuation expert with decades of experience in divorce-related financial analysis. His work spans business valuation, forensic accounting, and expert testimony, with a focus on helping attorneys and courts understand complex financial scenarios clearly and credibly. Bill’s ability to translate technical detail into courtroom-ready insight makes him a trusted authority in this field.

Why FSS Prioritizes This Topic

At Forensic Strategic Solutions, we specialize in high-stakes financial disputes—including business valuation and forensic analysis in complex divorce cases. Active passive appreciation is one of the more nuanced and evolving areas of our work, and staying up to date on current practices and jurisdictional requirements is critical.

We focus on presenting complex financial information in an understandable way that meets the requirements of the specific jurisdiction. By participating in sessions like this one, our team stays aligned with the latest thinking and maintains a sharp edge in both analysis and presentation. It’s how we help clients, attorneys, and courts reach reasonable, well-supported conclusions.

How to Register

This webinar is open only to FCG members. To sign up or learn more, visit: https://www.fcgnetwork.org

If you’re not an FCG member but are interested in more resources around complex business valuation and forensic services, feel free to connect with our team at Forensic Strategic Solutions. We’re always here to share insights, answer questions, or help with your next challenging case.