Different business figures are being used in separation discussions

Two numbers appear to contradict each other

Suppose an owner discussing separation has an accountant's balance sheet and an informal estimate of what the business might sell for. The totals differ sharply. The owner treats the lower number as the correct value without asking what either figure represents. Give both documents to the family lawyer and accountant, and clarify their purposes before relying on either in negotiations.

Provide the full financial picture

The Federal Circuit and Family Court's disclosure guidance describes the need to disclose relevant direct and indirect financial circumstances. Ask your lawyer how that applies to the reports and information available. Do not withhold a higher estimate merely because you disagree with it. The professional assessment needs the actual documents, their context and any limitations or errors you can identify.

Source: Federal Circuit and Family Court: Duty of disclosure

Record the date and basis of each figure

Note who prepared the document, when, for what purpose and which period it covers. Distinguish a financial statement from a sale discussion, indicative appraisal or formal valuation. In the hypothetical example, the balance sheet may describe assets and liabilities at an earlier date while the other estimate assumes continued trading. Those differences require explanation rather than a vote on which number feels fair.

Identify changes since preparation

List significant debt changes, lost contracts, new commitments or unusual transactions since each report date. Preserve supporting records. Ask the accountant what updated information is needed and the lawyer what valuation process is appropriate. Do not change business records or undertake transactions to manufacture a preferred outcome. The exercise is to explain the real position accurately.

Clarify any expert instructions

If a valuation is required, ask the lawyer how the valuer should be appointed and instructed. Provide requested information consistently and identify uncertainty. Avoid treating an informal broker comment as interchangeable with a report prepared for the actual matter. Ask for the assumptions, scope and limitations to be understood before using a number as the basis of a settlement proposal.

Keep discussion tied to comparable information

Use a short schedule of the documents and unresolved questions for the adviser meeting. Retain superseded reports so changes remain traceable. CRP can assist with organising commercial debt and trading information alongside the family's qualified advisers. The next step is a common understanding of what the figures describe, not an unsupported conclusion that separation entitles anyone to a fixed share of a chosen total.