It is common to have a business as one of the components of the property to be divided within a matrimonial / family law dispute as part of the divorce proceedings. In some cases the business can be the predominant component of divisible assets.
Unlike real estate, the value of a private business is not easy to determine and it is common for people to have wildly different opinions. Every business is unique, which requires a skilled business valuation expert to determine its value. As it is not as homogenous as real estate, there are no other reference points to rely on.
An independent business valuation not only takes the emotion out of the situation, but it also provides a very efficient way of bring this issue to a head. In many cases the independent expert business valuation provides a point of mediation for two different opinions by the respective parties. Additionally, it is quite common for one party to be actively involved in the business and the other party to be completely removed from the business, hence a business valuation is an excellent way to avoid potential misunderstandings and arguments.
Business valuation experts can be appointed as a joint expert, known as a single expert or single expert report. In other cases each side has their own expert. In some cases, a business valuation report is required for mediation purposes prior to formal court proceedings.
Pentagon Corporate is experienced in providing business valuations matrimonial / family law / divorce purposes across Australia. We work with a large number of lawyers and our reports have been used in multiple Courts.