Westside Family Law

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Determining business property division in divorce

It is not uncommon for a divorce to take place between two individuals who jointly own a business. British Columbia residents surely understand that dividing business assets is separate from the general property division that would take place in a divorce between a couple who do not share a business. However, many of the same principles apply in both cases. 

Determining the value of a business that is set to be divided as part of a divorce is called "valuation". This process can benefit strongly from the services of a valuation analyst who is trained to understand the nuances of business value and how that translates to the divorce settlement. Depending upon who will rely upon the valuation (e.g. a third party like a judge), it may be necessary for a full valuation to take place. Otherwise, a calculation of value may be sufficient.

Full valuation, while more detailed and reliable, is often more expensive and takes more time. The decision to go either route must ultimately rest with the couple. In cases where a divorce is amicable, the less-intense calculation of value may suffice for the court's purposes, but in cases of dissent, a full valuation may be preferable even in the face of higher costs. 

Not every divorce, even in cases where business property division is involved, requires a valuation. However, British Columbia residents know that every divorce is different, dependent upon the people involved and the nature of their separation. This is why it is important to retain the services of skilled attorneys in approaching a divorce situation, in order to ensure both parties are afforded an equitable and mutually satisfactory settlement. 

Source: natlawreview.com, "Valuation or Calculation in Divorce Case?", John S. Eory, Aug. 24, 2016

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