Divorce Valuations
Often in a business valuation for a divorce, the interest being valued is not being sold. Instead of being sold it is being awarded to one spouse. Commonly the standard of value urged upon the Court is a Fair Value Standard. Under the fair value standard, discounts for lack of marketability or lack of control are eliminated. Elimination of these discounts can make a very substantial difference in the value assigned to the interest in a business or professional practice. It has been found that ‘the value to be ascribed to shares in a family company must be a realistic one. This value should be based upon the worth of the shares to the party himself or herself.’ Harrison and Harrison (1996)
Valuation Approach for Divorce Valuations
When conducting a business valuation for a divorce, the Future Maintainable Earnings methodology is often used. With this approach, we are determining the value of an income stream. The methodology determines the value of the business and not the price at which it may change hands. The methodology makes no assumptions as to the price on sale. It represents the present value of the future income flows from the business. Value and price are often not the same, as price may reflect other benefits that ownership of the business may confer. These benefits may be such as synergies with existing businesses, a job, the desire to be self employed, lifestyle decisions etc.
Single Expert Witness in Family Law
In family law matters, business valuations are often prepared by a single expert witness. This approach helps reduce both legal costs and time spent in court.
Valuation methods can vary widely depending on the nature of the business. Key considerations include:
- The type and structure of the business
- The presence of business goodwill versus personal goodwill
Do you need a Divorce Valuation?
If you're navigating a divorce and need a business valuation, it's crucial to use a method that reflects both legal standards and practical realities. We can help you assess value with clarity, fairness, and audit-defensible rigor.
Why Choose BRV
• Multidisciplinary command across business valuation, SMSFs, property, and legal compliance
• Forensic due diligence and clause risk modeling for family law, commercial disputes, and acquisitions
• Audit-defensible methodologies aligned with court standards, ATO guidance, and ASIC expectations
Independence, Integrity, and Efficiency
• Single-source clarity avoids conflicting expert opinions and reduces litigation costs
• Transparent assumptions and legal overlays ensure defensibility and procedural fairness
• Collaborative engagement with solicitors and mediators to streamline proceedings and focus on resolution
Business Valuation Qualifications and Experience
The principle of Business Reports and Values, Lee Goldstein, has been involved in Business Valuations since 1985. He holds the following qualifications:
Double Major Degree in Accounting and Finance
Diploma in Forensic Accounting
Graduate Diploma in Valuation
Advanced Certificate of Business
Advanced International Certificate in Intellectual Property.