A recent divorce case that seemed “straightforward” ended up costing a staggering £1.3 million in legal fees. The couple were married for a long time and agreed their assets should be shared equally. So why did a case with no major disputes cost so much? One of the main issues was deciding how to value their assets.
The case was DF v YB [2025] EWFC 46 (B) for anyone wanting some light bedtime reading(!) but amidst the emotional turmoil of any divorce is the very practical division of assets, and accurate asset valuation is key. The family home, investments, businesses, or even the painting on the wall – all of these can be fair game, but each has its own challenges.
Disclosure of Assets
Before a financial settlement can happen, both parties must disclose their assets, debts, and income to get a clear picture of what’s available. What was once “ours” must be split into “yours” and “mine.” You can’t just split a house or business in half though, so to ensure fairness, the couple need to agree on how much everything is worth or otherwise they must be valued.
If both parties agree on a value, the process is easier but valuing complex assets like businesses or pensions can be tricky so early expert input is crucial. Expert valuers know the ins and outs of valuing different types of assets.
The Court Process for Valuation
If disagreements persist, you can apply to Court for a formal valuation from a Single Joint Expert (SJE).
These experts are jointly instructed, and their fees shared. They need to be impartial and have the right expertise and experience so it’s essential to choose the right expert early on. Challenges to the valuation are usually unsuccessful later unless there are major errors.
Navigating the Asset Valuation stage
Managing asset valuation can be smoother with the right approach:
- Keep Detailed Records: Have your documents in order – things like business accounts, property information, and bank statements will paint a clear picture of your finances.
- Open Communication: Try to keep an open line of communication open with your ex-partner. It can make the process smoother, less stressful and less costly.
- Professional input: Work with accountants or valuation specialists for accurate appraisals, especially for complex assets.
Final Thoughts
This recent case shows how even “simple” financial issues can get expensive. Disputes over asset valuation can lead to high legal fees, but expert valuations are often necessary to ensure fair division. They help create an accurate picture and getting early expert input can potentially save money in the long run. As tricky as this process may be, it’s a step in the right direction towards securing a fair outcome.
If you want to ensure you have a clear understanding of asset valuation read our guide on Asset Valuation During Divorce or contact one of our experts on Finances and Divorce.
