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in cases of marital dissolution. In Illinois, for example, the
Illinois legislature has defined the fair value of a noncash
asset as:
(A) the amount at which that asset could be bought
or sold in a current transaction between arms-length,
willing parties;
(B) quoted market price for the asset in active
markets should be used if available; and
(C) if quoted markets prices are not available, a
value determined using the best information available
considering values of like assets and other valuation
methods * * *. [215 Ill. Comp. Stat. Ann. 5/179E-15
(West Supp. 2002).]
In passing on the definition of fair value, the Illinois courts
have held that the fair value of an item may be the same as its
fair market value, but that the fair value of an item is not
always its fair market value. Institutional Equip. & Interiors,
Inc. v. Hughes, 562 N.E.2d 662, 667-668 (Ill. App. Ct. 1990); see
also Laserage Tech. Corp. v. Laserage Labs., Inc., 972 F.2d 799,
805 (7th Cir. 1992).
2. Difference Between Fair Market Value and Fair Value
Given the applicability to these cases of SFAS No. 107, we
believe that the accountant’s definition of “fair value” is more
pertinent to these cases than the State law definition.
Accordingly, we apply that definition to our analysis. The
concepts of “fair market value” and “fair value” are different
primarily in three regards. First, whereas fair market value
requires that the willing buyer and willing seller be reasonably
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