Nacos v. Nacos (App Div., 1st Dep’t)

Plaintiff (hereafter “the wife”) and the defendant (hereafter “the husband”) entered into a judgment of divorce dated August 1, 2017. Pursuant to the judgment, the wife was denied any claim to equitable distribution of the husband’s minority ownership interest in a business known as Cabo New LLC (hereafter “Cabo”).

The Supreme Court determined that the wife did not adequately meet her burden of establishing a value for the husband’s minority interest in Cabo. The husband retained a court-appointed neutral appraiser to determine the value of Cabo. The husband provided said neutral appraiser with financial information. For reasons not explained, the wife did not obtain a valuation of Cabo. In addition, the husband is subject to the “strict” provisions of the operating agreement.

For these reasons, the Appellate Court upheld the Supreme Court’s determination that the wife did not provide a basis of value upon which to award the wife equitable distribution of the value of the husband’s interest in Cabo.