| As part of the process of reaching a divorce | | | | have submitted. Whilst it is important to remember that |
| settlement, you will be required to make a full and | | | | the valuation is not the only factor the court takes into |
| frank disclosure of your financial circumstances. Since | | | | consideration, if you think it is inaccurate you may apply |
| the business can be considered an asset like any | | | | to the court for permission to ask the accountant |
| other, it is necessary to obtain a fair and meaningful | | | | questions or in some cases to hire separate |
| estimate of its value. | | | | accountants to do a valuation. This situation is very |
| The valuation process | | | | rare and the Courts will only agree if the costs are |
| Valuing a business is more complicated and subjective | | | | proportionate to the case. |
| than valuing a house. There are many factors to be | | | | In all cases, you should take legal, business and |
| considered such as projected income, goodwill and the | | | | accountancy advice. There may be tax and capital |
| nature of business you are involved in. | | | | gains tax implications in any decisions that you make. |
| Costs of sale, Capital Gains Tax and depreciation | | | | How will the valuation affect the settlement? |
| costs will be taken into account. It might be that without | | | | When arriving at a settlement, the court will consider |
| your skill/expertise your business would be worth very | | | | the valuation together with all of the other family |
| little. It is, therefore, important that a valuation is | | | | assets. If there are children, the court will evaluate the |
| undertaken at an early stage to ensure that costs do | | | | best possible outcome for their long-term financial |
| not escalate unnecessarily. A good family solicitor will | | | | stability. Depending on the valuation of your business |
| have links with accountants and forensic accountants | | | | together with your individual circumstances, this may or |
| to ensure an accurate report is produced to give you | | | | may not mean selling the business. |
| the best prospects for achieving a fair settlement. | | | | It is in your interests to arrive at a fair and meaningful |
| The court usually prefers to appoint a single joint | | | | value for the business as soon as you can since costs |
| expert, a consultative accountant who will act on | | | | can rise if it becomes lengthy and complex. You might |
| behalf of both parties and assess the business with a | | | | consider the collaborative approach with face-to-face |
| view to making a valuation. Sometimes, the valuation | | | | meeting, thereby reducing the amount of |
| may seem too high or low based on the evidence you | | | | correspondence. |