Q&As

What guidance is available for a forensic accountant valuation of shares in a limited company on divorce, in particular as to whether a minority discount should be applied?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 09 September 2020
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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 with the accounts providing the information necessary. 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 application is made using the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, Pt 18 procedure and it is ordinarily necessary to include the details and CVs of suggested experts, to enable the court to make a determination. The findings of the

Chris Bryden
Chris Bryden

Barrister, 4 King’s Bench Walk

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Key definition:
Valuation definition
What does Valuation mean?

The method by which it is decided how much a contractor should be paid at any one time.

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