Real Estate Assets
MaRous and Company was retained by a well-known family law firm to analyze the real estate
assets of a major real estate developer as part of a divorce.
The gross value of the assets was more than $1,000,000,000. The assets were located nationwide
and included several on-going extremely large development projects, a shopping center, and a
private golf course. Moreover, several other complex issues were involved, including
consideration of nonmarital assets, of debt issues, of contingent liability, and of cash flow. Many
of the deals were in the development process, and the analysis had to include the vulnerability of
completing potentially high-risk, high-rise residential condominium developments. During a
multiyear time period, MaRous & Company tracked the assets, which changed frequently due to
disposition and acquisition of properties, inspected the properties, and provided consultations in
regard to market value ranges. The risk of partially completed projects, of executed contracts
and unsold units in major developments, and of very complex debt structure including multiple
levels of mezzanine debt required an extremely complex analysis to estimate the net equity.
The case went to trial with a net difference in the estate value between the two parties
approaching $100,000,000. After being deposed on a number of occasions, Michael MaRous
was one of the first witnesses to testify at trial in regard to the assets. His court testimony lasted
13 days. Soon thereafter, the case settled with a reasonable resolution for both sides and with a
positive resolution for his client.