Buy-sell agreements can establish a price or valuation mechanism between owners, but that value may not control in every legal or tax setting. This article explains how buy-sell valuations are treated in IRS estate examinations, shareholder disputes, and divorce proceedings, including the requirements of IRC §2703 and the implications of Connelly v. United States.

The value of shares in a shareholder dispute can change significantly depending on the jurisdiction, cause of action, and valuation date. This article explains how those factors shape the applicable standard of value, treatment of minority and marketability discounts, valuation methodology, and the role of the valuation expert.