When you have substantial assets or a diverse portfolio of investments and interests, property valuation for divorce becomes complicated. Working with a practiced property division lawyer with financial understanding is essential to achieving a just result.
Contact The Riley Divorce & Family Law Firm when the appraisal of assets and liabilities in Toronto is an issue in your divorce. Our lawyers could ensure an accurate valuation of all family property so that you receive an appropriate settlement.
Both you and your spouse must disclose your holdings and their value to the other. All holdings acquired after marriage and the increased value acquired before marriage count toward the net family property calculation. The net family property calculation determines the equalization payment, so the value of assets is highly significant to the process and often a matter of intense dispute.
You are responsible for valuating the assets you control. Your proposed value must be based on relevant information, not a guess. A Toronto lawyer could point you toward resources to help you determine and verify the value of your varied assets. Valuation is sometimes easy. For example, it is simple to determine your bank balance on a specific date, and most brokerage firms and pension fund administrators can provide a statement of your holdings keyed to your separation date. The value of motor vehicles, boats, and similar assets typically depends on make, model, and age, and there are widely available resources to establish the value. Professional assistance might be required to value other assets.
For many couples, the marital home and other real estate holdings represent the bulk of their wealth. Accurately stating their worth at the time of separation and any liens against the property is critical to the asset division process.
Assessments for property tax are usually not a fair indicator of residential property value. An accurate value can often be obtained by considering sales prices for similar homes in the neighborhood and the average number of days the property was on the market at the valuation date. Properties that include a working farm receive special treatment under the Ontario Family Law Act s.11, and a Toronto lawyer could explain how the law might impact farm valuation and the net family property calculation for various assets and liabilities.
Couples often accept each other’s valuations or negotiate a mutually acceptable value. In the case of a dispute, the spouse presenting the valuation must present supporting documentation. If the other spouse finds it insufficient, an opinion from a certified real estate appraiser may be required.
Ownership interests in businesses can greatly complicate the asset division process. The spouse with the ownership interest must provide the valuation, allowing them ample opportunity to manipulate the result. Tax considerations can also significantly impact the value of a business interest.
There are multiple accepted ways to evaluate a business, and the choice of method can significantly impact the determination. Working with a Toronto legal professional who understands business valuation methods for assets and liabilities and can produce compelling arguments in favor of one method over another is critical.
Business valuation experts are expensive, and a business owner could argue that the cost of hiring one is disproportionate to the asset’s value. This could be a matter for negotiation between the parties, but an expert’s services might be necessary if there is a wide variation in the perceived value of the business interest.
Emerging from your divorce with financial stability should be one of your primary goals. It can be hard to achieve without accurate valuations of your family property, debts, and future liabilities like taxes.
The Riley Divorce & Family Law Firm has extensive experience in appraising assets and liabilities in Toronto and is available 24/7. Reach out now to get a diligent lawyer working for you.
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