How Are Assets and Liabilities Valued in Divorce? ================================================= Why Valuation Matters in Divorce -------------------------------- Accurate valuation of both assets and liabilities is essential to achieving a fair financial settlement in divorce. Whether you're dividing property, pensions, businesses, or debts, the court needs a clear picture of each party's financial position to apply the principles of [needs](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-needs-principle), [sharing](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-sharing-principle), and [compensation](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-principle-of-compensation). Who Carries Out the Valuation? ------------------------------ 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](https://www.judiciary.uk/wp-content/uploads/2021/10/PFD-Memo-Experts.pdf)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. How Are Assets Valued?: Case Insight ------------------------------------- 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](https://www.bailii.org/ew/cases/EWHC/Fam/2008/935.html)* [\[2008\] EWHC 935 (Fam)](https://www.bailii.org/ew/cases/EWHC/Fam/2008/935.html): *"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"* ### **Need Expert Help?** Vardags' team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses. We are the **only** HNW family law firm with [an in-house Financial Forensics department.](https://vardags.com/financial-forensics) Our team specialises in identifying, tracing, valuing, and forensically reviewing assets, including businesses, property, and investments. **If you're going through a divorce and need help valuing your assets or liabilities, our team of elite divorce lawyers and forensic experts can guide you. We offer a free initial consultation to qualifying individuals.** [BOOK FREE CONSULTATION](https://vardags.com/contact "BOOK FREE CONSULTATION") About Us -------- Ayesha VardagFounder & President "A DIVORCE LAWYER WIDELY REGARDED AS ONE OF THE WORLD'S BEST" The Metro Vardags offer a unique approach to the law, specially tailored to the needs of HNW individuals. We offer City-quality representation for your divorce and family law needs. Our lawyers come from the very best universities and receive the very best training - they are determined, diligent, and dedicated to getting the best outcome... [read more](https://vardags.com/about-us) [BOOK FREE CONSULTATION](https://vardags.com/contact) Related Guides -------------- [Can I dispute a valuation?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/disputing-a-valuation "Can I dispute a valuation?") [How are antiques, art and jewellery valued for divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-antiques-art-and-jewellery-for-divorce "How are antiques, art and jewellery valued for divorce?") [How are car collections valued in divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-car-collections-for-divorce "How are car collections valued in divorce?") 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[How are pensions valued for divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/how-are-pensions-valued "How are pensions valued for divorce?") [How are pets valued for divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-pets-for-divorce "How are pets valued for divorce?") [How are stocks & shares valued for divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/how-are-stocks-and-shares-valued-for-divorce "How are stocks & shares valued for divorce?") [How are trusts and foundations valued for divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-trusts-and-foundations-for-divorce "How are trusts and foundations valued for divorce?") [How are yachts valued in divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-a-yacht-for-divorce "How are yachts valued in divorce?") [How to value a business for divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuation-of-a-business-in-divorce-proceedings "How to value a business for divorce") [Valuing the matrimonial portion of a business](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-matrimonial-portion-of-a-business "Valuing the matrimonial portion of a business") [Valuing Your House for Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/valuing-your-house-for-divorce "Valuing Your House for Divorce") The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.