Jointly retained valuators can help take the sting out of divorce

 
The process of separation and divorce can be difficult enough without fighting over the value of assets and property, says Vaughan divorce lawyer Paul Mazzeo.
 
It’s why he advocates for the use of joint appraisers as an effective way for separating spouses to attempt to minimize conflict.
 
“Parties can hire a joint appraiser or valuator from the beginning, and agree to figures the valuator determines, whether they are happy with them or not,” says Mazzeo, principal of Mazzeo Law. “It can help people get through the process, rather than going back and forth or hiring separate appraisers.”
 
Appraisers can be expensive but can prevent further conflict – which could lead to extra fees and possibly litigation, Mazzeo says. So, for complex cases, it can be worthwhile for each party to share the cost.

“Sharing the value of property and assets can be a hard thing for many people to stomach already, so once they’ve accepted this is a part of the separation and divorce, you should do it in the simplest way possible.”
 
The valuator’s determinations become key figures in how the separating spouses determine equalization, a payment one spouse makes to other so they both leave the marriage on equal financial footing, Mazzeo says.
 
Equalization is typically determined by assessing each spouse’s net worth as of the date of separation. The value of all their liabilities is subtracted from the value of all assets on that specific date to determine net worth. If, for example, one spouse’s net worth is $1 million and the other’s is $500,000, then the first pays the second $250,000, he says. In the end, both spouses leave the marriage with the same net worth.
 
“In theory it’s a simple concept but in practice there are many things that come up that make it a little more complicated.”
 
For example, the date of separation could be in dispute. Or if the marriage was particularly short, one spouse might argue for unequal property division, which is allowed in certain circumstances under legislation.
 
In Mazzeo’s experience, he has found that much of the conflict arises from determining the value of assets and property.
 
“Coming to net worth figures is not as simple as looking at bank accounts,” he says. For example, one spouse may say their restaurant is worth nothing, while the other spouse argues it is worth hundreds of thousands of dollars. A valuator can help settle such disputes.
 
“The more you have, the more complicated it is to deal with,” Mazzeo says. “A valuator can avoid escalation of extra legal fees and more litigious issues.”
 
For more family law news and information please visit http://www.mazzeolaw.ca/

The post Jointly retained valuators can help take the sting out of divorce appeared first on Family Lawyer | Family Law Office | Mazzeo Law Firm | Vaughan, ON.