Sources of balance sheets that may be used in a valuing a marital estate in a divorceThere are five sources of balance sheets that divorce lawyers commonly rely on in valuing a marital estate in a divorce:
- Marital estate disclosures. The standards of value represented in disclosures for the purpose of marital dissolution will be varied.
- Loan applications. The standard of value represented in loan applications is generally "fair market value." Lending institutions usually require use of this standard.
- Personal financial statements. The standard of value represented in personal financial statements is normally "fair market value."
- Business financial statements. The standard of value represented in business financial statements is normally "book value." However, in the interest of full disclosure (or to assist an owner in getting a loan) CPAs may reference the fair market values of assets in the notes to the financial statements. They may also prepare supplemental financial statements on a fair market value basis.
- Business tax returns. The standard of value used in the balance sheets of tax returns is normally “book value.”