How are stocks & shares valued for divorce?

Given the fluctuating nature of shares, obtaining an accurate valuation may be difficult. Value might be attributed to its cost value or its cash-in value, but there is no one straightforward approach.  

Determining the value of ‘quoted’ shares is simply a case of obtaining the current share price. Whereas for ‘unquoted’ shares, the company from which the shares are in can provide a valuation, or an independent forensic account may need to be instructed.  

The valuation of share options is more complicated. A share option is the right to purchase shares at a point in the future, typically once certain conditions have been met, such as being employed by the company for a specified period of time. To provide a valuation, a forensic accountant will likely be needed. 

However, the valuations provided by different experts may vary and where a broad estimate is provided, the court will be cautious in relying on a specific figure too heavily.  

The reliability of a valuation will affect the court’s treatment of an asset, and an order will reflect the specific issues attached to its valuation. As per Martin v Martin [2018] EWCA Civ 2866, even if the court can determine a valuation, this doesn’t mean that they will give equal weight to the value compared to the valuations of other assets.  

Obtaining an accurate valuation of stocks and shares is difficult. Fortunately, Vardags has years of experience acting in cases involving complex assets. If you are considering or going through a divorce, and you or your spouse have significant stocks and shares, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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