Calculating the income of business owners can be an exceedingly challenging task. At Everest Law we represent a diverse range of professionals and business owners. We have a civil litigation branch as well which allows us to use our expertise on the family law side.
For example, the calculations can differ immensely when representing someone who derives their entire income from rental properties (special rules apply here) or when representing a medical health professional. The courts do not simply take the numbers reported to the CRA – we must look back to the financial statements for the corporation and assess what deductions will be accepted by the court and which ones will not be.
Occasionally, there are anomalies which require someone with experience in dealing with these matters.
Typically, our team can narrow down the question of income quickly which is quite helpful in the preliminary stages of litigation. In the later stages we often do hire valuators to come in and value a business or provide us with an income valuation if we think a file is going to trial. This is done to lower the overall litigation cost as hiring a professional valuator before trial allows us to cut down on the total trial days which saves the client significant funds and time.
Having someone on your side that understands your business can be a key asset. It is significantly cheaper to hire one counsel rather than hiring a family lawyer and a corporate lawyer for your divorce.