MATRIMONIAL VALUATION & LITIGATION
Matrimonial valuation and litigation involve determining the financial worth of assets and liabilities during a marriage breakdown to facilitate a fair division of property, often requiring the involvement of experts in complex cases, especially when businesses or significant assets are involved. This process is crucial for property division in divorce or separation proceedings, aiming to ensure equitable outcomes for both spouses.
Key Aspects of Matrimonial Valuation and Litigation:
Valuation
This is the process of assessing the fair market value of assets and liabilities accumulated during the marriage, including real estate, businesses, stock options, and other financial instruments. In cases involving businesses, valuators consider factors like book value, economic outlook, goodwill, earning capacity, and market price of similar companies.
Importance of Valuation Date
A specific “valuation date” is established to determine when assets and liabilities are assessed for division, and this date can be a point of contention in litigation, with courts considering factors like physical separation, absence of sexual relations, and stated intentions of the spouses.
Litigation Support
When spouses cannot agree on the valuation of assets, the matter often proceeds to court, requiring expert testimony from professionals like Chartered Business Valuators (CBVs). These experts assist legal teams in understanding financial complexities, preparing reports, and advising on cross-examination.
Role of Professionals
Specialized firms and professionals, including financial valuators, forensic accountants, and legal experts in family law, play a vital role in navigating matrimonial disputes, ensuring assets are properly valued, and debts are accurately identified.
COMMON ISSUES
High-income individuals and business owners often face more complex valuations due to the intricacies of stock options, bonuses, and various business structures. The matrimonial home, defined by its ordinary occupation as a family residence at the time of separation, also requires specific valuation and potential buy-out negotiations.
income determination
An income determination report is a document that outlines an individual’s income, often for legal purposes like child or spousal support calculations in family law cases. It analyzes various income sources, considering factors like salary, bonuses, self-employment income, and other financial assets. The report helps determine a fair and accurate assessment of a person’s earning capacity and potential, ensuring financial obligations are appropriately addressed.