Rumley Holmes provides business valuation, litigation accounting and related services to law firms, accountants, public and private companies, governments, not-for-profit organizations, and individuals.
Rumley Holmes also assists corporations and individuals with the purchase in sale of businesses.
Rumley Holmes has offices located in Toronto and Barrie and serves clients throughout Canada and the United States. As a boutique professional services firm, we are able to deliver quality services in a cost-effective and efficient manner.
We are Chartered Business Valuators and Chartered Professional Accountants that have the financial experience to help you and/or your clients make sense of complicated financial matters.
- Family Law, Business Valuation and Income Pursuant to the Federal Child Support Guidelines
- When is a business valuation required?
- What businesses does Rumley Holmes have experience valuing?
Family Law – Business Valuations and Income Pursuant to the Federal Child Support Guidelines
Rumley Holmes understands that the separation process is a difficult one. It is our objective to help individuals and their families through the divorce process with an equitable financial settlement, so they can move on to the next stage of their life.
When a couple is seeking a divorce, there are many complicated financial issues that arise. In this regard, there are various reasons for a business valuation expert to become involved in family law matters, most of which are outlined below.
Business Valuations
When a couple files for divorce they must declare the value of all their assets and liabilities as of their date of Marriage and Separation. In general, the increase in the value of a couple’s net assets (i.e. assets – liabilities) during their marriage must be divided equally. This may seem to be a fairly straight forward calculation; however, if one spouse owns a business (or part thereof), has stock options or another asset which cannot be readily determined, a business valuator will be required to determine the fair market value of asset(s) less any contingent taxes when applicable as of the date of Marriage and Separation.
Income Assessments in Accordance with the Federal Child Support Guidelines – Spousal and Child Support
In order to determine a spouse’s responsibility for child and spousal support, an income assessment may be required. An income assessment is generally required when an individual is self-employed or owns a business, as an individual’s income per their tax returns may not be truly indicative of the available income to a spouse.
Structuring Settlements
Ensuring the equal division of a couple’s assets and liabilities upon divorce can often be very complicated. Furthermore, the income tax consequences may be significant and it is important for both spouses to minimize taxes payable both when the division of assets occurs and in the future.
Review, Assessment and Critique of Another Expert’s Report
If you have been presented with an expert report regarding a business valuation, stock options income assessment or other financial matter, we will perform a review of the expert report and provide you with our thoughts regarding its reasonableness and accuracy. Furthermore, when necessary, we can provide a critique of the expert report for use in negotiation, mediation/arbitration or at trial.
Contingent Tax Liabilities
Contingent tax liabilities are the taxes that are likely in be paid on the eventual disposition of an asset such as shares in a business or the draw-down of RRSP assets and pay-out of a pension. Contingent tax liabilities and notional costs of disposition (i.e. realty fees, commissions, etc.) are deductible as a liability by a spouse, as at the date of Marriage and Separation.
Income for Support Purposes – Spousal and Child
David Holmes, CPA, CA, CBV, specializes in providing valuation and related services upon Matrimonial break-down. In particular, David assists in the determination of an individual’s income pursuant to the Federal Child Support Guidelines. Determinations of an individual’s income pursuant to the Federal Child Support Guidelines, is generally accepted for both Child Support and Spousal Support purposes.
Income Determinations (or assessments, as they are sometimes called) are required when an individual’s income is not as it appears on their Income Tax Return. The circumstances that commonly require an income determination in accordance with the Federal Child Support Guidelines is when an individual is:
- An individual is a shareholder or director of a corporation;
- An owner of an unincorporated business;
- Receives unreported income (i.e. cash sales);
- Receives rental income
- Has significant investment income;
When is a Business Valuation Required?
Business valuation and knowing the factors that contribute to a businesses’ value are commonly required in a number of situations, such as:
• Shareholder disputes
• Family law
• Income tax and estate planning transactions
• Purchase and sale of a business
• Shareholder transactions
• Employee share ownership plans and stock options
• Joint venture and partnership disputes
• Income tax litigation
• Goodwill impairment testing
• Litigation support
What Types of Businesses or Industries Does Rumley Holmes Have Experience Valuing
Rumley Holmes LLP and its Partners, David Holmes, CPA, CA, CBV and Aaron Rumley, CPA, CPA (US), CFE have valued businesses spanning a multitude of industries and sizes. Examples include:
• Manufacturing
• Technology companies
• Intellectual properties
• Hotels
• Retail
• Transportation and logistics
• Restaurants
• Service businesses
• Wholesale and distribution
• Pharmacies
• Golf courses
• Contractors
• Start-up companies
• Professional practices, such as Dental Practices, Accounting Firms, Law Firms, etc.
• Security and alarm monitors and installers
• “Main Street” owner-managed businesses
As a Chartered Business Valuator, David Holmes is trained and experienced in valuing all types of businesses and evaluating each businesses strengths, weaknesses, opportunities and threats, combined with up-to-date information regarding transactions in the marketplace.
