In ________cases, the valuation date itself is an issue to be resolved by the court. In such situations, the appraiser must be prepared to address…

In litigated cases, such as shareholder disputes or marital dissolutions, the valuation date is frequently a matter of law or judicial discretion rather than a simple agreement between parties. State statutes or legal precedents often dictate potential dates (e.g., date of separation, date of filing, date of trial), and the court must decide which is appropriate. Consequently, the valuation analyst must be prepared to provide valuations for multiple dates, as the final, legally binding date may not be known until the court issues its ruling. This situation is unique to the adversarial and legally governed nature of litigation.

B. Estate tax cases: The valuation date is statutorily defined by the Internal Revenue Code, typically as the date of death or an elected alternate valuation date.

C. Enterprise value identification cases: This describes a component of the valuation process (identifying enterprise value), not a type of engagement or case where the date is a legal issue.

D. Cooperatives: This refers to a type of business entity. While a cooperative could be involved in litigation, the entity type itself does not define the context of the valuation.

1. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). In the context of marital dissolution, the text explains, "The valuation date is a matter of law and varies from state to state. The valuation date may be the date of separation, the date the divorce complaint is filed, the date of trial, or some other date." (Chapter 33, p. 911). This directly supports the idea that in litigated matters, the date is a legal issue resolved by the court.

2. NACVA. (2023). Business Valuations: Fundamentals, Techniques & Theory (FT&T). The materials consistently emphasize that the purpose of the valuation dictates its parameters. For litigation support engagements, it is noted that the "rules of the court and jurisdiction" govern aspects of the valuation, including the valuation date, which is often a contested legal point. (See sections on Litigation Engagements).

3. Pratt, S. P., & Grabowski, R. J. (2008). Cost of Capital: Applications and Examples (3rd ed.). While focused on the cost of capital, the book's introductory chapters on valuation principles reinforce that the valuation date is a critical assumption determined by the context of the valuation. For legal and regulatory purposes, this date is often prescribed by the relevant statute or decided by the trier-of-fact (the court). (Chapter 1, The Valuation Engagement).