My Business is Being Valuated for Separation - How Do I Keep the Cost of the Report Down?

Oct 12

During a separation or divorce, part of the procedure requires your family law lawyer to help negotiate a fair division of assets. If you own a business, you may want the business to be valuated in order to determine a fair division of assets. Business valuation reports can be expensive but there are ways to help minimize the cost of the report.

Cost Considerations

The cost of a business valuation report can depend on the size and complexity of the business. To keep the costs down, we recommend providing financial documents in a timely manner and providing good quality responses to the valuator. Do not send irrelevant information to the business valuator.

Trust Between Parties

Similar to your general family law matter, the cost of the report can depend on the level of trust between the parties. If you do not believe the financial information provided by the other party, you may ask the valuator to conduct a forensic audit of the records, but this could be expensive and lead to increased costs.

Cooperation Between Lawyers

The more fighting there is between the family law lawyers, the more your business valuation report will cost, so it's important that there is cooperation. If the family law lawyers can effectively negotiate with the parties to agree on the facts, this will help reduce the cost of your business valuation report. Some examples of key dates you want agreement on would be separation dates and cohabitation dates.

Confirmation of Facts

If the business valuator is asked to provide an opinion based on different scenarios, this could increase the cost of the business valuation report. The sooner you can agree on key dates, the more helpful it will be to keep the business valuation report a reasonable price.

Estimates

Typically, the business valuator will be able to provide an estimate on the cost of the report, however, if additional documents are provided, this could also increase the cost of the report.

Verbal Reports

Alternatively, you may want to ask the business valuator to provide a verbal opinion rather than a written report. These could be helpful if you have a smaller company, if the revenue is not high and number of assets is low.

If you need help with negotiating a fair division of assets from your divorce, contact us for a free initial consultation.

Want to learn more? Please contact us for a consultation.

The material provided in this blog is for general information and education purposes only and does not contain, and should not be construed as containing, legal advice applicable to a particular set of facts. If you require legal advice, please contact us for a consultation with one of our experienced family law lawyers.

Abby Pang

Abby is a lawyer and loving mother of two children. She is an advocate for healthy families and children. She has turned her energy towards supporting families, by providing guidance and helping families navigate through the legal system, while empowering them to have a voice throughout the process.

Abby Pang’s journey began in Prince Albert, Saskatchewan. Subsequently, her family moved to the east side of Vancouver, before moving to Richmond, where she spent most of her childhood. Her father was a refugee who came to Canada in 1970, and from him she learned the meaning of grit.

In her youth, Abby experienced a breakdown in her family unit which resulted in divorce. She understands that marital breakdowns and divorces can be complicated, but also devastating. She also understands there are alternative options and ways to mitigate the damaging effects of the process.

Abby earned a bachelor’s degree from the University of British Columbia, studying psychology and family studies. She earned a law degree from Manchester Metropolitan University, exchange program through the Hong Kong University. In 2008, she returned to British Columbia to work in a large law office while completing her National Certificate of Accreditation. She then completed her articles in a boutique law firm in Vancouver. She was called to the British Columbia bar in 2012.

Abby has appeared in Provincial Court, Supreme Court and Court of Appeal. She deals with personal injury claims, sexual assault (civil) claims, and family law matters: In addition to her court experience, Abby takes a “family first” approach and is resolution-focused. She is registered through the International Academy of Collaborative Professionals.

As a lawyer, Abby Pang’s community involvement included volunteer work with the Federation of Asian Canadian Lawyers and the Canadian Bar Association Women Lawyers’ Forum. As well, she had the opportunity to assist at Rise Women’s Legal Center and Battered Women’s Support Services through volunteering with Amici Curiae Friends of Court.

Abby is the recipient of A Woman of Worth Leader of the Year Award 2023 for her outstanding achievements in strengthening her community/organization through innovative approaches to resolving challenges and inspiring meaningful change. She has been recognized nationally as a nominee of the YWCA Women of Distinction Awards 2023, which honours extraordinary women leaders and businesses.

In her personal time, Abby enjoys snowboarding, bike riding, and spending time with her family.

https://www.illumalaw.com/team

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