How are assets and liabilities valued in a divorce?

To obtain an accurate and impartial valuation of the assets and liabilities of both parties, expert evidence is often sought.  

Where possible, a single joint expert (SJE) should be directed to provide expert evidence. An SJE is an expert witness directed to provide a report for the court on behalf of two or more of the parties. Parties may seek evidence from an expert on their own, and there is no requirement for them to seek the court’s permission prior to instructing an expert. However, under the Family Procedure Rules 2010, the court’s permission is required to file any expert evidence in financial proceedings. Therefore, if a party seeks expert evidence themselves, but does not have the court’s permission to file it, the evidence will not be put before the court and considered.  

Moreover, the court will only provide permission if it believes that the expert evidence is necessary to assist it in resolving the proceedings. Sir Andrew McFarlane’s President’s Memorandum: Experts in the Family Court report provides a useful summary of the principles applied by the court when deciding whether it will admit evidence.  

Permission should generally be sought prior to the first appointment (FDA), but the court may direct for or permit expert evidence to be sought later.  

Obtaining an accurate valuation can be difficult depending on the nature of the asset. Fortunately, the court recognises this, deeming valuation to be an art rather than a science. This principle was helpfully expressed by Moylan J in H v H [2008] EWHC 935 (Fam):  

“The purpose of valuations, when required, is to assist the court in testing the fairness of the proposed outcome. It is not to ensure mathematical/accounting accuracy, which is invariably no more than a chimera” 

If you are considering or going through a divorce and require a valuation of your assets, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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