In 2010, B.C. introduced new Rules of Court for family law matters.
These new rules required spouses to jointly retain one financial expert to value family property. Previously each spouse retained their own expert. Under the new Rules, if one spouse disagrees with the valuation they may obtain a rebuttal report. This has reduced the cost of obtaining reports and has generally been a very effective way to resolve disputes. Seldom are rebuttal reports obtained.
Conflicts sometimes occur as to the scope of the work to be prepared by the financial expert. For example, in B.C. distributive taxes are not always recognized by the court (these are the taxes that would be payable to remove income from a corporation).
The court may be asked to make an order regarding whether the jointly retained expert should or should not provide an opinion on any particular issue.
FAQ
1) What type of financial experts are typically used in family law matters?
A variety of financial experts may be consulted in a family law dispute such as accountants, including forensic accountants if necessary, business valuators, actuaries or pension evaluators, and real estate appraisers.
2) Are financial experts used for family law matters that are not going to court?
Yes, financial experts can be retained even when a family law matter is not going to court. Spouses and their lawyers may agree to retain a financial expert to prepare a report that helps reach a settlement, such as a business valuation or property appraisal.
3) Who pays for the cost of retaining a financial expert?
The cost of retaining a financial expert in a family law matter can be shared equally between the parties, or in proportion to their incomes, or by only one party, depending on the circumstances.
Deborah A. Todd
