Divorce Settlement

Divorce: Choose your valuation professional wisely

Valuation as Evidence Leads to Out of Court Settlement

Situation

As part of settling a divorce, a business valuation was needed for a physician’s practice. Each party hired a professional to value the practice, one hiring a CPA and the other party hiring Lou Pereira, CBA, ASA, CVA, from Merrimack Business Appraisers.

Merrimack Business Appraisers’ Approach

  • Lou Pereira prepared a thorough and detailed valuation of the physician’s practice.
  • The detailed valuation report, exceeding one hundred pages, was prepared to present, if necessary, in court to support the division of assets as part of the divorce settlement.
  • The CPA for the other party prepared a four page letter valuing the practice between $50,000 and $100,000.

Valuation Outcome

In court, the report prepared by the CPA was not accepted as evidence. The valuation prepared by Merrimack Business Appraisers at a value of $495,000 was admitted into evidence with Lou Pereira testifying to the valuation. The judge advised the parties not to waste the court’s time, but to settle the matter outside of court based on the accepted evidence of the valuation prepared and presented by Lou Pereira.

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