When Can My Children Decide Where They Live?
Author: Crystal Hawryluk, CPA, CGA, CBV, CFE Some divorcing couples may have limited assets to be divided such as a house and RRSP’s and perhaps some liabilities such as a mortgage and credit card debt. Divorces such as these can often be quite straightforward from a division of matrimonial property standpoint. However, in more complex situations like this, you may require the assistance of a Financial Neutral (i.e. a financial expert that has also been collaboratively trained) to help you navigate the additional complexities that arise from owning a business. Specifically, how do you determine what the shares of your business are worth? In this situation, we are talking about shares that do not trade on a public stock exchange, and instead the shares are owned in a private company. A Financial Neutral who is also a Chartered Business Valuator (“CBV”) can likely assist in this area. A CBV is a designated professional who has undergone training specific to determining the fair market value of the shares of privately held companies. There are several different methodologies that can be used when valuing businesses and the CBV will need to determine the appropriate methodology that is to be applied. As a...