Author: Carol Pages, Pages Family Law.
Going through a separation? Learn why the end of financial year is the idea time to prepare your business valuation for a fair family law property settlement
If you’re going through a separation or divorce, one of the first and most important steps in your family law property settlement is to prepare and finalise the balance sheet. This includes listing all assets and liabilities, including superannuation. If a business is part of your asset pool, it may be appropriate to arrange a formal business valuation.
For more detail on the general valuation process in family law, read our earlier article Family law property division – Asset valuations | Family Law
Why Business Valuation Matters in Family Law
When dividing property in a family law matter, an accurate business valuation ensures a fair and informed outcome. This is especially important where one or both parties own or operate a business, as the business may represent a significant asset.
Are You Self-Employed?
If you are self-employed, the starting point is to assess whether your business has a quantifiable value. Some businesses—particularly sole traders—may have minimal or nominal value if the business relies entirely on the owner’s personal efforts.
However, if you or your spouse holds an interest in:
- ● a partnership,
- ● a company, or
- ● a larger business with goodwill, staff, or assets,
…then a professional business valuation is highly recommended.
Each case is unique, and getting tailored family law advice is essential to ensure your business is accurately assessed in the context of your property division.
Why Now Is the Right Time
With the end of the financial year fast approaching, now is an ideal time to review and prepare your business financials. An up-to-date snapshot of your business will provide the most accurate basis for any upcoming business valuation, reducing the risk of:
- ● Overvaluing the business based on outdated performance, or
- ● Undervaluing it based on incomplete data.
Accurate valuation supports better negotiation and smoother finalisation of your property settlement.
Need Help With a Business Valuation in Your Family Law Matter?
At Pages Family Law, we have qualifications in both business and law. We work closely with business owners to ensure their property matters are handled with care, clarity, and commercial understanding. If you’re separating and need advice about your business valuation or property settlement, contact us today.
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The content of this article is provided for information purposes only and does not constitute legal advice. We recommend that you seek legal advice relevant to your own circumstances and we would be happy to assist you.
Carol Pages is the Principal of Pages Family Law and an Accredited Specialist in Family Law and a Nationally Accredited Mediator. If you would like advice about your own separation, please contact Pages Family Law at info@pagesfamilylaw.com.au or on 03 9121 8077 or book a 15 minute free discovery call via our website.
