When and how are valuations for business and property carried out? — Guide for England and Wales

Introduction: purpose of valuations in family cases

Valuations play a key role in divorce and financial remedy proceedings in England and Wales. The court and the parties need reliable figures to ensure a fair division of assets. Valuations also guide settlement negotiations and protect future income and security.

When are valuations required

Valuations become necessary when the parties cannot agree the value of significant assets. Typical triggers include businesses, farms, rental portfolios, pensions with transfer value, and high value properties. The court may order a valuation when disagreement persists or when a party requests an expert report.

Who carries out valuations

Independent valuers prepare reports. For businesses, parties usually instruct forensic accountants or corporate finance specialists. For properties, chartered surveyors or RICS registered valuers perform the work. The court accepts reports from recognised professionals with relevant experience and up to date credentials.

How business valuations are carried out

A business valuer starts by reviewing accounts, management records and contracts. They interview directors and key staff if needed. The valuer selects an appropriate method such as asset based valuation, earnings multiple or discounted cash flow. They adjust for non‑recurring items related party transactions and owner remuneration. The final report explains assumptions, calculation steps and provides a clear market value or share value.

How property valuations are carried out

A property valuer inspects the site and assesses condition, location and marketability. They compare recent local sales and consider planning prospects, tenancy agreements and potential development value. For specialised property, such as commercial premises or mixed use sites, they use specialist comparables and income capitalisation. The report states a valuation date and any limiting conditions.

Common valuation methods explained

– Market comparable method: compares similar assets or properties recently sold

– Income approach: converts expected future income into present value

– Asset based method: totals identifiable assets minus liabilities

– Discounted cash flow: forecasts future cashflow and discounts it to present value

Practical steps for instructing a valuer

Parties should agree the scope in writing to limit disputes. They should supply up to date accounts, lease documents, tax returns and any shareholders or partnership agreements. The valuer should set out assumptions and provide a clear explanation of limitations. If both parties accept a single expert, the court may approve joint instruction which reduces costs.

Dealing with disagreements and court involvement

If parties dispute the valuation, each may instruct its own expert. The court can direct further enquiries, appoint a single joint expert or hold a hearing on valuation issues. Judges give weight to robust, well supported reports and clear evidence.

Timing and tax considerations

Valuations use a specific valuation date, often the date of separation or the date the court chooses. Tax consequences such as capital gains tax, stamp duty land tax or income tax affect the choice of settlement. Parties should involve tax advisers early to design tax efficient solutions.

Conclusion: accurate, transparent, timely

Accurate valuations help reach fair outcomes quickly. Clear instructions, full disclosure and experienced valuers reduce dispute risk and control costs.

Summary

– Instruct qualified valuers early for businesses and property

– Agree scope and supply full records to the valuer

– Use suitable valuation methods and state the valuation date

– Consider tax effects when planning settlements

– Seek joint expert appointment to save time and costs

Alexander JLO Solicitors are well aware that going through divorce can be very difficult. Whilst the implementation of no-fault divorce back in 2022 has made the legal process much simpler, there are times, especially in relation to financial matters, when input from an experienced solicitor is vital.

With that in mind we have developed a revolutionary new service which will ascertain whether or not it’s wise to have legal advice on finances when going through divorce. Simply called Form Easy it will assess your level and type of assets and determine if you qualify for a free, no-obligation consultation to discuss your case with us and decide on the best ways forward for you. Simply click the Form Easy button, or visit the page here, answer a few short questions and we will let you have our input on whether we can help. 

At Alexander JLO we have many years of experience of dealing with all aspects of family law and will be happy to discuss your case in a free no obligation consultation. Why not call us on +44 (0)20 7537 7000, email us at info@london-law.co.uk or get in touch via the contact us button and see what we can do for you?

This blog was prepared by Peter Johnson on 1st December 2025 and is correct at the time of going to press. With over forty years of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. He is widely regarded as one of London’s leading divorce lawyers. His profile on the independent Review Solicitor website can be found Here.

To follow up on any of the above please contact Guy Wilton of our family department. Guy has wide experience of acting for the firm’s clients, their family and their businesses. Guy’s experience as a lawyer started in the Northern and Welsh Circuits, including the Liverpool Courts, where he represented numerous clients after being called to the Bar, before opting to join Alexander JLO in 2017 and qualifying as a solicitor in 2024. He is a highly experienced family lawyer with a particular interest in financial remedy proceedings and child contact disputes.

Guy’s profile on the independent Review Solicitor website can be viewed here.