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Divorce and Appraisal

February 6, 2014

NEBBI DivorceDivorce is never easy. It’s emotionally and financially draining, and it can affect your life for years after the fact. Certain factors can make a divorce even more complicated — children, property, possessions, and especially a business partnership.

While cash, securities, and homes have values that are relatively easy to identify, a divorcing couple that own a business can find it challenging getting an accurate value of the assets. Equipment and machinery can have a wide range in value, and without a certified expert researching and analyzing the value, one party may gain an advantage in the courtroom.

In a divorce with a business, there are various scenarios that could come into play. For example, the business could continue to exist after the divorce settlement. Or, one party could offer to buy the other out. Or the company’s assets could be liquidated.  That’s when it’s crucial to have a CMEA analyze machinery and equipment values and determine the fair market value, orderly liquidation value, and forced liquidation value, and determine which is most appropriate for the situation.

CMEAs can work directly with the business owner and their counsel, the spouse and their counsel, or mutually for both parties if there’s agreement to use a single equipment appraiser. If the equipment appraiser is also needed to testify at the divorce hearing, they can do so.

The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: NEBB Institute

 

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