Dividing Business Assets On Divorce
When the Court looks at the value of a shareholding in a business in the context of family law proceedings, it looks to ascertain a valuation that a willing buyer would pay to a willing seller for that shareholding.
The Court is, therefore, looking at the true market value when considering business valuations on divorce.
If a shareholding is in a company listed on the stock exchange, it is more straightforward because each shareholding has a transparent market value.
Valuing a Business during a Divorce
Future Maintainable Earnings Method
When a private trading company is to be valued, the main business valuation method used is the "Future Maintainable Earnings Method".
In simple terms, this methodology looks at how much profit the business can be expected to make each year. It is reasonable to assume that a buyer is prepared to pay a multiple of these profits, as the buyer will expect to get at least those profits back each year.
Net Asset Method
Another valuation method is the "Net Asset Method". This method values a company by referencing the realisable values of its net assets minus liabilities.
This valuation method is usually applied to an investment company, where the company's valuation is directly linked to the value of the investments.
It can also be used for companies with low profitability, where there is limited or no value to the future profits and limited growth expectations.
Business Valuation Evidence
It is usually necessary to have the benefit of business valuation evidence within financial remedy proceedings.
An application to rely on business valuation evidence must be made before the first hearing, known as the First Directions Appointment (FDA).
The parties should agree on the instruction of a Single Joint Expert (SJE).
Before placing any business valuation evidence before the Court, that party must seek permission from the Court to obtain a valuation. The Court must consider whether the valuation evidence is necessary before granting permission.
Below are examples of questions that may be put to a valuation expert:
- What is the value of the shareholding?
- Are there any minority shareholder discounts to take into account?
- What are the tax consequences of any disposal or transfer of the shareholding or any cash extraction, if applicable?
- What is the capital liquidity available to the shareholders?
- What is the likely future gross and net sustainable income available for
- The shareholders now and in the future?
Challenges to Business Valuation Evidence
If one party is dissatisfied with the valuation evidence, the starting point is to raise questions with the expert. If those questions do not resolve the issue, there is the option to cross-examine the expert at the final hearing or apply to rely on another expert.
Liquidity
The liquidity of a business is very important and is often a source of conflict between parties.
In some cases, no or limited capital funds can be extracted from the business without damaging its performance. The ability to continue trading to provide an income for one or both parties is fundamentally important.
How does the Court treat business assets?
The Family Court recognises that there is a difference between risk-laden assets (like business assets) and copper-bottomed assets, such as property and cash.
It is unlikely that the Court would make an order that would result in one party retaining all the risk-laden assets (the business), leaving the other party to retain all the copper-bottomed assets (cash and property).
Usually, it would be more appropriate to spread the risk between the parties.
The Court has wide discretion when deciding how businesses should be treated in divorce:
- A transfer of shares from one spouse to the other, subject to a lump sum payment;
- A transfer of shares from one spouse to the other, subject to the payment of spousal maintenance payments;
- A transfer of shares from one party to the other without any further payment upon the basis that the other spouse has more of the non-business assets. However, this would result in the spouse who retains the business retaining more of the risk-laden assets, and therefore, this may produce an unfair result;
- Each spouse retaining their interest in the business, subject to a shareholders' Agreement to clarify how the business is to be run in the future;
- An order for the sale of the business.
How Our Family Law Team Can Help With Dividing Business Assets on Divorce
- Accurate Business Valuation: We have close links with forensic accountants who can value a business using the right method for the type of business. us
- Expert Guidance: We address issues like minority shareholder discounts and tax consequences of share transfers or disposals.
- Dispute Resolution: We assist with questioning or cross-examining valuation experts and can recommend additional experts if needed.
- Liquidity & Risk Management: We help manage business liquidity and a fair division of risk-laden assets.
- Tailored Solutions: We facilitate share transfers, negotiate lump sum payments, and assist with shareholder agreements for fair business division.
- Full-Service Law Firm: As a full-service law firm, we provide access to expert corporate and commercial law advice, ensuring that all aspects of your case are handled seamlessly.
Testimonials
Mr S, Warrington
I found Jane Tenquist to be both very knowledgeable, professional and easy to relate to. I would have no hesitation in recommending Jane or Myerson.
Vinutha S.
I am thankful to Jane Tenquist and her team with special mention to Brittany Rodwell for their professionalism. Their advice, care and guidance was immense and was a blessing in disguise which helped me to get through the dark moments of my life. All along they briefed me on what to expect and how things will proceed. They were supportive and reassuring and addressed my stressful concerns in time.
Legal 500, 2027
An extremely strong team outside the city centre. Jane Tenquist is a fabulous team leader, and the team is committed to NCDR wherever it works for clients. A bright and able family law team.
Legal 500, 2027
Jane Tenquist is a superb department head. Sarah Whitelegge, Nichola Bright, and Joe Ferguson are strong lawyers with exceptional client care skills.
Legal 500, 2027
Kind, caring, strong, and professional.
Legal 500, 2027
I think this firm has a unique family team. Although they are professional and will always try to get the best for their clients, they are also empathetic and caring and will be realistic with their clients, always managing expectations.
Mrs T
It was so wonderful to meet the Myerson Family Team. The whole experience felt relaxed and completely free from pressure, and everything was explained clearly and in layman’s terms, which was incredibly important to me during such a difficult time. I left feeling truly heard and respected, not just like another case in a system. Brittany made me feel seen as a person, and that meant everything to me.
Mr. H
Fantastic service from Sarah Whitelegge and Nichola Bright. Both highly knowledgeable, experienced and approachable dealing with all queries and concerns in a timely and professional manner.
Mrs P., Northwich
Jane Tenquist remained calm and determined throughout. Her professionalism and knowledge of divorce law is beyond reproach. Jane gave me support at a time when I needed it most and from that the strength and confidence to fight for what was rightfully mine. I am very grateful to Jane and I would not hesitate in recommending her to anyone who is in need of a Divorce Lawyer.
M A, Urmston
From start to finish everything done by Myerson was perfect. Nothing was any trouble, no matter how many times I contacted them over matters.
Mr L.
Did not have any issues that I had not thought had been dealt with efficiently or effectively. Would recommend to others.
Miss W., Altrincham
The Solicitors at Myerson were really helpful and dealt with my case really quickly. They kept me updated throughout and the whole process was very smooth, thank you!
Mr P., Stretford
It’s been a pleasure working with you. Your approach has been a breath of fresh air.
Mrs F., Altrincham
Very friendly professional service shown at all times. It made a huge difference to see a smile greeting you at those meetings; and a friendly voice on the end of a phone when your world seems to be crumbling around you.
Mr F, Heald Green
Excellent service. I would not hesitate in recommending Myerson. Nichola Bright was outstanding! Nothing was too much trouble for her.
Mr J., Rixton
Myerson Solicitors conducted my business in a highly professional manner. I was consistently kept informed of progress and any questions I had were answered in a timely manner.
Legal 500, 2021
An excellent matrimonial department within a larger firm, enabling the matrimonial team to harness advice on commercial matters in the drop of a hat.
Mr D, Knutsford
An outstanding service with thoughtful and relevant advice given throughout. Highly recommend.
Mrs F, Altrincham
I would certainly recommend Nichola Bright. She showed empathy and understanding throughout the whole process. She is a very professional and caring solicitor.
Mrs S, Liverpool
I went to Myerson and I could not have found a better, and more welcoming firm of solicitors. As well as their professionalism, Myerson offer charming surroundings, enhanced by friendly and helpful reception staff.
Legal 500, 2021
The team is headed by Jane Tenquist; her ability to listen, knowledge of this area of law, deciphering relevant key information critical to the matter and progression is highly commendable. Jane’s team are equally strong in these skills and together they work excellently. As a client I have felt to be in a very safe set of hands and I say thank you for your hard work.
Legal 500, 2021
As a client of the practice I have experienced positive and practical guidance from my first introduction. Filing for divorce following 35 years of marriage was a very traumatic life event but I have been supported and guided throughout the whole process. My wishes were listened to and then legal advice given provided as to my various actions.
Legal 500, 2021
They have an approachable, honest manner that is supported by extensive knowledge and experience. Nichola Bright offers her clients the feeling of confidence in her advice as well as her understanding and appreciation of the challenges they are facing. She has the human touch that is so valuable to clients.
Legal 500, 2022
They ensure that relevant experts are brought into the process when matters are outside the remit of the lawyers. This ensures clients get the best possible advice.
Legal 500, 2022
The individual team members are thorough in their approach to dealing with client enquiries and fully understand the need to ensure outside experts like myself are brought into the process when required. This gives clients the reassurance that all avenues have been explored when dealing with their case.
Jill
A complex and challenging case. However, Gemma constantly eased our anxiety and worries with her sound advice and calm, swift responses to our endless queries. She was always very professional and knowledgeable, able to explain clearly and concisely in both legal terms and layman's terms when we struggled to understand some of the complexities of the case. Always friendly and approachable, I would recommend her in a heartbeat. As a company they were very fair with their fees for which we are very grateful. A great service all round.
I wanted to extend a heartfelt thank you for the unwavering support and assistance you've provided thus far in handling my case. Today, our barrister delivered an outstanding performance, which fills me with optimism that we will continue to persevere with this level of dedication until the conclusion. Your assistance has been invaluable to me, especially during times of mental strain. Your unwavering support has truly made a significant difference.
Mr. Ahmad
I want to express my sincere thanks to Jane for her outstanding legal representation and unwavering support throughout my divorce and financial settlement case. Her expertise, diligence, and dedication were instrumental in achieving a favourable outcome.
Irfan
I cannot express enough gratitude for Jane Tenquist and her exceptional team at Myerson. During one of the most challenging periods of my life, they provided invaluable legal counsel and unwavering support. Ms Jane Tenquist is not only a brilliant legal mind but also an incredibly compassionate and understanding individual. She approached my divorce and financial settlement case with a keen eye for detail and a strategic approach, ensuring I received the best possible outcome. Her ability to navigate complex legal matters with ease and clarity was truly impressive.
Mr. C
Thank you so much – Jane and her team's support, professionalism and thoroughness throughout the last year has been superb.
Liam Kelly, Barrister, Deans Court Chambers
I have found Joe's management of this case…exceptional and well beyond his years. There have been some knotty issues in this matter…and his ability to cut through them and see the bigger picture is a credit to him.
Mr D
I would like to thank Nichola, and the family team, for all the guidance and support you provided to me during a very difficult time. This was much appreciated.
Meet Our Family Solicitors
Home-grown or recruited from national, regional or City firms. Our family lawyers are experts in their fields and respected by their peers.
Contact Our Experts
You can contact our lawyers below if you have any more questions or want more information:
0161 941 4000
Latest Myerson Family Law News
Myerson Magazine Autumn 2026 Issue
Welcome to the latest edition of Myerson Magazine, where we share practical legal advice, expert insights and news from across Myerson Solicitors. In this issue, we cover some of the important legal considerations that arise at different stages of life, from protecting family wealth and planning for the next generation to understanding your...
Read Newsletter
Myerson Solicitors Strengthens Chambers UK Rankings with Six New Recognitions in 2027 Guide
Leading independent law firm Myerson Solicitors has secured six new rankings in the Chambers and Partners UK Guide 2027, further strengthening its reputation for legal excellence and reflecting a sustained period of growth and success for the firm.
Read News
11
From Conflict to Collaboration with Marcie Shaoul
How can professionals better support separated parents to move away from conflict and towards a more constructive co-parenting relationship? The Myerson Family Law team is delighted to welcome Marcie Shaoul , founder of The Co-Parenting Method and one of the UK’s leading voices on constructive co-parenting following separation, for an engaging...
View Event
Do Grandparents Have Rights to See Their Grandchildren?
Grandparents often play a significant role in a child's life, providing emotional support and stability and, in some cases, being the child's primary caregiver. Official statistics published by the Office for National Statistics in 2021, together with more recent estimates from the Family Rights Group , suggest that around 160,000 children in...
Read Blog
Wedding Law Reform: Why the Proposed Changes Matter for Couples
The law governing weddings in England and Wales has remained largely rooted in legislation dating back to the nineteenth century. However, significant reforms may now be on the horizon. In July 2026, the government launched its consultation “ Tying the Knot: Reforming Weddings Law in England and Wales ”, proposing the most substantial overhaul...
Read Blog
The Remarriage Trap: What Every Divorced Person Should Know Before Saying “I Do” Again
For many, a second marriage is a true new beginning, a chance to improve with hindsight. Second marriages are far from uncommon. According to the Office for National Statistics (ONS) , around one in three opposite-sex marriages in England and Wales involve at least one person who has been married before. With thousands of divorced people...
Read Blog