Need Guidance For Your Divorce Involving Equipment Appraisals?

Posted Nov 25th, 2020

Nobody likes the D-word. It is painful for primary partners and their families.

Need Guidance For Your Divorce Involving Equipment Appraisals

It is tough for all professionals involved as they have to achieve an outcome of fairness and resolution in an emotionally charged negotiation.

When a business is involved, the complexity is amplified. Absolute Appraisals works closely with many business owners and or their attorneys executing equipment appraisals and divorce assets appraisals in Southern Ontario.

An equipment appraisal occurs when a business is involved. A regular challenge experienced by appraisers is that they are called in quite late in the process, which can delay a process that all parties are pushing to get concluded. We recommend bringing the appraiser in earlier so that all the financial data needed for a conclusion is on hand before it becomes an urgent requirement.

Our aim at Absolute Appraisals is to put finalization speed as a priority to minimize your discomfort.

It is important that a professional, registered appraiser is used to ensure efficiency, assessment correctness, simplicity of the process and an easier streamlined process for everyone involved.

Here is some helpful advice for you if you have a business involved in your divorce:

Plan Ahead

Emotions are going to become more ragged as you move along the timeline. Do as much administration upfront as possible, or you will land up tired, emotional and still have a pile of divorce preparation paperwork to get through.

List all assets and equipment as soon as possible to avoid the equipment being sold or moved before the appraisal/divorce assets appraisal process is done.

The moving of assets will more often occur if one of the divorcing partners is hands-on in the business while the other works remotely or is a silent partner. Unfortunately, we have been involved with clients where they only ascertain that big-ticket items have been sold when they arrive for the inspection and the sale transaction information is unclear.

We recommend that both parties in the divorce are not present as in the majority of cases; the appraisal is prolonged or cancelled due to altercations.

The List

A professional appraiser will call for an asset list prior to contracting the work or setting up an inspection appointment. If unlisted items are uncovered in the course of an appraisal and listed items are missing, divorce parties must be prepared for this for their legal advisors in advance.

If each party has appointed a separate appraiser, then an agreed list must be received by all appraisers. When new or missing items occur, a re-inspection is required. When a final list is achieved, the appraisal can commence.

Setting a Date of Value

Values fluctuate with the market, and they might fluctuate with rates of exchange or, in the case of perishables, will fluctuate with ageing.

Both clients and their counsel must negotiate the date of which values are pinpointed. This is more complex than it appears at first glance. More than one date may have to be mutually agreed upon for different items. Apply dates to the asset list and consult with your counsel.

Court Preparation

Unfortunately, even if you initially do not believe you will be proceeding to court to finalize the settlement, you should execute the communications and administration as if you were. Ensure that any professionals involved, e.g. appraisers, psychologists, forensic accountants etc., are prepared to appear in court or attend an arbitration. Also, ensure that those professionals are able to appear or attend. As soon as you have a date, immediately verify their availability.

Both counsels will require supporting documentation from your appraiser to qualify the appraisals. A report supported with substantial research, data, and explanations may nullify the appraiser’s court appearance requirement, which is a cost-saving.

Confidentiality

Be reassured that no asset list, appraisal report or related value may be distributed to any parties whatsoever by appraisers unless required by law or unless the appraiser is served with a subpoena.

Contact the experienced appraisers at Absolute Appraisals & Consulting Inc. who can meet the demands of your divorce assets and equipment appraisals in Southern Ontario. We have substantial experience in business equipment appraisals across all markets and industries. We look forward to the opportunity to assist you in bringing about a swift and fair resolution at this challenging time.

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