Instructing a forensic accountant in family proceedings
Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Instructing a forensic accountant in family proceedings

The following Family practice note produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Instructing a forensic accountant in family proceedings
  • General principles
  • Valuation methodology
  • Instructing an expert
  • Potential considerations
  • Minority interests

It is commonly the case that where in financial remedy proceedings one of the assets is an interest in a limited company, the court will direct a valuation of that interest. Sometimes it will be straightforward to calculate the value of a business, such as a one-person incorporated trading entity, where there is no intrinsic value to the company and a formal valuation is not required and the accounts provide the necessary information. However, for a larger business, or one that involves multiple shareholders or a minority shareholding, it will usually be necessary for the court to appoint a forensic accountant to conduct a valuation. The procedural provisions relating to experts are set out in Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, Pt 25—see also: Instructing an expert.

The most common type of company interest in financial remedy proceedings is a family owned company, ie a company that the one or both of the parties built up and operated throughout the relationship, or which was introduced by one or both parties on marriage. Such a company will usually be limited by shares (with the suffix ‘Ltd’ after its name) and is distinct from a business run as a sole trader as it has a separate legal personality (per section 16(2) of the Companies Act 2006). There will be at least one director and often

Related documents:

Popular documents