We understand that obtaining a divorce is one of the most difficult things anybody will go through in a lifetime. It is our objective to help individuals and their counsel through the divorce process providing family law support to achieve an equitable financial settlement, so they can move on to the next stage of their life.
When might a person need valuation services or other family law support?
There are many instances where having a professional Chartered Business Valuator can be of great benefit. Some of these are:
- If you require a business valuation for your net family property statement
- If you or a client requires an assessment of income pursuant to the Federal Child Support Guidelines for purposes of child or spousal support
- If you need or are required to produce an expert’s report for matrimonial purposes
- If you or your client are concerned that his or her spouse is hiding assets or income during divorce proceedings
- When a review and assessment of another Expert’s report is required
- If assistance is needed with structuring a settlement for division of property purposes
- When you require an financial expert in collaborative family law
When a couple is seeking a divorce, there are many complicated financial issues that arise. In this regard, there are various reasons for a Chartered Business Valuator to become involved in family law matters, most of which are outlined below.
Business Valuations
When a couple files for divorce they must declare the value of all their assets and liabilities as of their date of marriage and separation. In general, the increase in the value of a couple’s net assets (i.e. assets – liabilities) during their marriage must be divided equally. This may seem to be a fairly straight forward calculation, however, if one spouse owns a business (or part thereof), has stock options or another asset which cannot be readily determined, a Chartered Business Valuator will be required to determine the fair market value of the asset(s) less any contingent taxes (when applicable) as of the date of marriage and separation.
Income Assessments – Spousal and Child
In order to determine a spouse’s responsibility for child and spousal support, an income assessment may be required. An income assessment is generally required when an individual is self-employed or owns a business, as an individual’s income based on their tax returns may not be truly indicative of the available income to a spouse. This is determined in accordance with the Federal Child Support Guidelines.
Structuring Settlements
Ensuring the equal division of a couple’s assets and liabilities upon divorce can often be very complicated. Furthermore, the income tax consequences can be dramatic and it is important for both spouses to minimize taxes payable both when the division of assets occurs and in the future.
Review and Assessment of Another Expert’s Report
If you have been presented with an expert report regarding a business valuation, stock options, income assessment or other financial matter, we will perform review of the expert report and provide you with our thought regarding its reasonableness and accuracy. Furthermore, when necessary, we can provide a critique of the expert report for use in negotiation, mediation/arbitration or at trial.
Contingent Taxes
Contingent taxes are the taxes that may be paid on the eventual disposition of an asset such as shares in a business or the draw-down of RRSP assets and pay-out of a pension. Contingent taxes and notional costs of disposition are deductible as a liability by a spouse, as at the date of Marriage and Separation.
If you have any questions regarding the financial aspects of family law support, please do not hesitate to contact us.
Important Links:
Federal Child Support Guidelines
Meet Christopher Alexander, Principal Valuator
Christopher is a Chartered Accountant and a Chartered Business Valuator. Over the course or his career, he has provided Business Valuation, Litigation Support and Family Law Support services to many businesses and individuals in the Greater Toronto Area.
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