Vancouver Divorce Business Valuations and Guideline Income Reports Lawyers
As highly rated BC high net worth family property valuation, family asset division and child and spousal support lawyers ,we are cognizant that expert business valuations and guideline income calculations will be even more important now because of the new BC Family Law Act. The concept of excluded property under the new family property division regime will require two valuations. The first valuation needs to occur at the start of the marriage like relationship or date of marriage and the second valuation needs to be done at the date of the settlement agreement or trial. Further, in high net worth cases involving child and spousal support an expert may be required to calculate what a spouse’s income is from all sources including businesses, ventures, rental property and trusts as well as from employment. Contact our highly rated lawyers early on in your case.
The BC family law rules direct the use of joint experts on financial issues. Lorne MacLean, Q.C. established the BC law that a guideline income report does not need to be joint report under the rules in respect of spousal support. What happens though when one party disagrees with the jointly appointed expert business, practice or real estate evaluation?
This weeks decision in Janis v Janis dealt with the issue of whether a rebuttal valuation report can be prepared and by whom as well as dealing with the common problem of outdated reports.
[19] In the circumstances of this case I am unable to conclude that it is appropriate to order the preparation of an updated joint expert report by either Ms. Daum or Mr. Hooge. The intention of the Rules as written, the concept of proportionality and the policy considerations as listed by Smith J. in Aqualini mitigate against such an update; they also mitigate against allowing the claimant to tender her own, non-joint expert opinion at trial and I decline to make the order sought. Both of these decisions are however subject to further order of the trial judge in the event that he or she should determine that an adjournment for updated expert evidence is appropriate.
[20] While I have determined that no update report is appropriate I have also considered the issue of whether the claimant is entitled to tender a responding report as contemplated by Rule 13-6(4) which reads as follows:
13-6(4) Unless the court otherwise orders, if a party intends to introduce an expert’s report at trial to respond to an expert witness whose report is served under subrule (3), the party must serve on every party, at least 42 days before the scheduled trial date,
(a) the responding report, and
(b) written notice that the responding report is being served under this rule.
[21] I read this Rule as allowing any of the parties affected by a joint report to commission a purely responsive or rebuttal report which critiques the report of the joint expert. Further, I see nothing in the Rules or the authorities cited to me which requires that such purely responsive report or critique must be done by a jointly appointed expert or by an expert authorized by court order. If I am wrong on that point, I would grant leave to the claimant to commission and tender a purely responsive rebuttal report or critique of the Daum report.
[22] The decision as to whether the tendered report is limited to response and critique will ultimately be a decision for the trial judge and the party tendering such report runs the very real risk that it may be excluded in whole or in part if it strays beyond such limited purpose.
[23] The final issue dealing with expert reports is whether Ms. Daum or Mr. Hooge, or some other expert, may provide an expert report on the issue of Guideline income to be attributed to Mr. Janis.
[24] In my respectful opinion, and as submitted by Mr. Thomas on behalf of the respondent, the issue of Guideline income for purposes of support calculations is not a “financial issue” as that term is defined by Rule 13-3(1). Accordingly Rule 13-3(3) provides that the claimant is at liberty to retain an expert of her choice and to tender such evidence at trial subject to the normal rules and notice provisions regarding expert reports and evidence.
If you are a person of high net worth where the consequences of an erroneous valuation face you head on you need to call us across BC toll free now at 1 877 602 9900.
