Situation

A couple that had been together for over 15 years decided they no longer wished to stay married and subsequently filed for divorce. Unfortunately, the divorce itself was not amicable, with both the husband and wife having differing opinions on how their marital assets should be divided. Eventually the attorneys for the husband and wife negotiated and agreed to the split of all of the assets, except for the business, which both sides had differing opinions of value. The wife, who was the sole shareholder of the business, obtained an appraisal from a professional business appraiser. The resulting value was well below what the husband thought it was worth.

Engagement

The husband’s attorney reached out to Mariner Capital Advisors to first review the valuation performed by the wife’s appraiser. After the initial review, if we found material errors in the wife’s appraiser’s report, we would be asked to prepare our own valuation report and submit that to the judge, and testify in court if necessary.

Result

After a thorough review of the wife’s appraiser’s report, we identified dozens of material errors and biases within the report and presented these errors and biases to the husband and his attorney. Upon further discussion, Mariner Capital Advisors and the client agreed that the best course of action was to proceed forward with our own independent valuation of the business. We prepared a detailed valuation report which was designed to remedy the errors and biases found in the wife’s appraiser’s report.

After submission of the report, we prepared numerous exhibits for trial. The husband and wife ended up mediating in an attempt to settle. We participated in this mediation, providing valuation insight to the mediator, as well as identifying settlement solutions. Eventually, both sides settled on terms that created a positive outcome for both the husband and the wife. Such a settlement would not have been possible for the husband had he not had our qualified valuation report to use as leverage in the negotiation process.

This document is for informational use only and may be outdated and/or no longer applicable. Nothing in this publication is intended to constitute legal, tax, or investment advice. There is no guarantee that any claims made will come to pass. The information contained herein has been obtained from sources believed to be reliable, but Mariner Capital Advisors does not warrant the accuracy of the information. Consult a financial, tax or legal professional for specific information related to your own situation.