Originally written by Stephanie Spicer on Small Business
Regrettably what was previously in a lot of cases the ‘golden goose’ for the family does on divorce become the victim of undue attention.
In divorce proceedings the value of the parties’ interest in the business needs to be agreed and it has to be decided how this value should be reflected in the financial redistribution.  In valuing the business there are different approaches that can be used but hand-in-hand with the valuation including the liquidity of the business.  Obviously, there can be tax implications when money is extracted from a business so tax efficiency must also work in tandem with value and liquidity.
Up-to-date valuations must be used, while hope and future value can only be used in exceptional cases if it provides a fair outcome.  Historical values are also relevant when considering matrimonial and non-matrimonial assets, and one needs to be aware that the court does not always accept that valuations provide a true picture of the businesses but act as a guide.  An example of this is in the case of P V P in 2008 where the court valued a shareholding at £730,000 but the other shareholders subsequently offered to buy

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