Day 2 of the Crivalo Method is where all financial components are translated into precise, defensible values. With the full financial picture already established, the focus shifts to determining exactly what each element is worth—no estimates, no ambiguity.

The process begins with asset-by-asset valuation. Each material asset is assigned a verified, point-in-time value, including real estate, business interests, investment portfolios (public and private), retirement accounts, pensions, and any deferred compensation or equity-based holdings. Where required, appropriate experts—such as CPAs, appraisers, actuaries, or valuation analysts—are engaged to ensure accuracy and credibility. The objective is clear: no ranges, no approximations—only defensible values that both parties can rely on. At this stage, every asset is assigned a clear and supportable value.

Liability + Obligation Valuation

Once assets are valued, attention turns to liabilities and obligations. All debts are fully quantified, including mortgages, loans, and credit lines, along with any current or embedded tax liabilities. Future or contingent obligations are identified and, where applicable, translated into present-value impact. This ensures that obligations are not treated as abstract or deferred concerns, but as real financial components that directly affect outcomes. By the end of this phase, all liabilities and obligations are clearly defined and measured.

Tax Impact Integration

With gross values established, the process moves into tax impact integration. Each asset and obligation is evaluated based on its specific tax treatment—capital gains exposure, ordinary income implications, penalties, and any embedded tax burdens. Carryforwards and other tax attributes are incorporated where relevant. The goal is to convert gross figures into net usable values, reflecting what each asset is actually worth after taxes. At this stage, all values are adjusted to reflect real-world financial impact.

Liquidity Classification

Next, assets are categorized through liquidity classification. Each item is identified as liquid, semi-liquid, or illiquid, based on how easily it can be accessed, transferred, or converted. Cash and marketable securities are distinguished from real estate, private investments, and business holdings. Any constraints related to timing, access, or conversion are clearly identified. This step ensures that value is understood not just in total, but in terms of usability. Here, liquidity constraints are fully defined and visible.

Risk + Assumption Review

Finally, the process concludes with a risk and assumption review. Key valuation inputs—such as market conditions, business performance expectations, and interest or discount rates—are tested for sensitivity and variability. Assumptions are documented and agreed upon, ensuring that both parties understand the basis for all valuations. This eliminates hidden disagreements and creates a shared foundation for decision-making. At this stage, all assumptions are transparent, tested, and accepted.