Family law business valuation in Australia: the complete guide

A family law business valuation is an independent opinion of what a business, or one party's interest in it, is worth at a stated date, so that it can be counted properly in a property settlement after separation. You are likely to need one if either of you owns or controls a business, shares in a private company, an interest in a partnership or trust, or a loan account with any of them, and you cannot agree on the figure. It applies to married and de facto couples alike, whether you are negotiating, preparing for mediation or already in court.

This guide explains how the Family Law Act 1975 treats property, how suitably qualified business valuers approach a business, and what to do at each step. It is general information, not legal advice.

What is a family law business valuation?

A house has comparable sales and listed shares have a screen price. A private business has neither, so its value has to be worked out from its records, its prospects and what a buyer would realistically pay. In a family law matter, the valuation usually answers four questions:

1. What is the business worth as a whole?
2. What is each party's interest worth, such as their shares or units, after the business's debts?
3. What loan accounts exist between the business and either party, and will they be repaid?
4. How much of the profit is really a wage for the owner's work?

The answers go into the list of assets and liabilities that both of you, the lawyers and, if it comes to it, the Court work from.

A family law valuation differs from one prepared for a sale or a bank in three ways:

• Independence comes first. It will be read by two people who may each prefer a different figure. In court proceedings, an expert's duty to the Court prevails over any obligation to whoever instructs or pays them (rule 7.18 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021, "the Rules" in this guide).
• The reasoning must be visible. Every adjustment, method and assumption should be set out so the other party can test it.
• The basis of value must be clear. Valuers commonly work to market value: broadly, the price a willing buyer and a willing seller would agree at arm's length, each acting knowledgeably, prudently and without compulsion, as the international definition quoted in the ATO's market valuation guidance puts it. Your instructions should state the basis of value.

When do you need a business valuation in a separation?

You need one when a business interest forms part of either party's property or financial resources and its value is not agreed. Typical situations:

• one of you is a sole trader whose business has equipment, stock, money owed to it or goodwill of real value;
• one or both of you hold shares in a private company or an interest in a partnership;
• the business runs through a family trust that one of you controls, or a unit trust in which one of you holds units;
• either of you has a loan account with a company or trust, in either direction;
• the business is co-owned with an outsider, such as a sibling.

A formal valuation may not be needed if the business is worth little more than its equipment, or if you genuinely agree on a figure. The Court's pre-action procedures describe it as unacceptable for costs to be disproportionate to the financial value of what is in dispute (Schedule 1, Part 1 of the Rules), so ask your lawyer which report, if any, the stakes justify.

Married and de facto couples

A later application needs the Court's leave, which depends on matters such as hardship, or the other party's consent (s 44). You do not have to be divorced first: the time limit in s 44(3) only runs from when a divorce order takes effect, and property orders can be sought before then.

De facto couples must also meet at least one threshold: a relationship of at least 2 years in total, a child of the relationship, substantial contributions by the applicant where serious injustice would otherwise result, or a relationship registered under a state or territory law (s 90SB). Geographical requirements apply too (s 90SK), and they depend on whether your state or territory is a participating jurisdiction (s 90RA). If you live in Western Australia, ask your lawyer which law applies to de facto property matters.

How does a business fit into the property settlement?

Since 10 June 2025, the property provisions of the Family Law Act 1975 have included changes made by the Family Law Amendment Act 2024. They apply to proceedings started on or after that date, and to earlier proceedings not finally determined by then, unless the final hearing had begun (Schedule 1, item 68).

The Court may alter interests in property only if it is satisfied that, in all the circumstances, it is just and equitable to make the order (s 79(2), and s 90SM for de facto couples). In deciding what order to make, the Court:

1. identifies the property and debts: the existing legal and equitable rights and interests in property of either or both of you, and your existing liabilities (s 79(3)(a));
2. takes contributions into account: financial and non-financial contributions to acquiring, conserving or improving property, contributions to the family's welfare including as homemaker or parent, and the effect of family violence on a party's ability to contribute (s 79(4));
3. takes current and future circumstances into account: including age and health, income, property and financial resources, capacity for gainful employment, care of children and family violence (s 79(5)).

The Court's own guidance says there is no formula for dividing property.

The valuation does most of its work at the first step: a business interest, and every loan account attached to it, needs a figure before it can go on the list. At the second step, how the business was built and by whom can matter (the Court's guidance gives running a business as an example of a non-financial contribution), but weighing contributions is for negotiation or the Court, not the valuer. At the third step, the business is also a source of income: the Act lists each party's income, property and financial resources, and the extent to which each has contributed to the other's income and earning capacity (s 79(5)(c) and (n)). If the value rests on future profits, ask your lawyer how those profits are treated as income, so they are not counted twice.

If the matter heads to trial, the standard trial directions in the Court's Central Practice Direction provide for a joint balance sheet of the values each party alleges, with footnotes on any dispute, amended once any single expert valuation is complete.

How does the business structure change what is valued?

A valuer values what each of you actually owns, which is not always "the business".

Sole traders. The owner and the business are the same legal person, so the question is what a buyer would pay for the business, separate from the owner's own labour. The answer often turns on owner dependence.

Partnerships and companies. A partnership agreement, a company's constitution and any shareholder agreement can govern exits, transfers and buy-out terms, and so affect what an interest is worth. The Court's list of documents for property cases includes the partnership agreement, the company's constitution and its latest annual return listing directors and shareholders.

Discretionary trusts. The trustee holds the assets and decides, within the deed, which beneficiaries receive income or capital; no beneficiary owns a fixed share. How trust assets are treated in a settlement is a legal question that usually turns on control: who the trustee is, who directs a corporate trustee, and who can appoint or remove the trustee (often called the appointor). The Rules require each party to disclose trusts of which they are appointor or trustee, trusts over which they have direct or indirect power or control, and trusts of which they, their child or their spouse is an eligible beneficiary (rule 6.06(2)(f)).

Unit trusts. Unitholders hold fixed units, so units are usually valued from the trust's equity and the deed, much as shares are.

Loan accounts

Money often moves between owners and their business:

• The business owes you (a credit loan account), for example because you left profits in it: your asset and the business's liability.
• You owe the business (a debit loan account), for example because you drew more than your wage: your liability and the business's asset, but only to the extent it is likely to be repaid.
• A trust owes a beneficiary, for example distributions resolved but never paid.

Each must be counted once, on both sides. The loan account example shows how. The Rules also require disclosure of liabilities and contingent liabilities (rule 6.06(2)(h)), so if either of you is a guarantor of a business loan, tell your lawyer and the valuer.

What valuation date is used, and why do current values matter?

Every valuation is tied to a date. The ATO's market valuation guidance makes the general point that a valuation should not rely on events that could not reasonably have been foreseen at that date.

The Act directs the Court to identify the parties' existing property and existing liabilities (s 79(3)(a)), so a valuation that was accurate at separation can be out of date by the time a matter settles or is heard. The Rules and practice directions reflect this: a party whose financial circumstances change significantly must file a new Financial Statement, or a short affidavit, within 21 days (rule 6.06(6)), and the standard trial directions call for updated Financial Statements before trial.

Sometimes the value at separation matters too, for example where one party has run the business alone since. How changes after separation are treated is a question for your lawyer, but the instructions can ask for more than one date.

There is no fixed shelf life: a business that has lost a major customer or signed a large contract can change in value quickly, so if months have passed, ask whether an update is needed.

Which valuation methods are used?

The ATO's market valuation guidance describes three broad approaches: market, income and cost. It names capitalisation of earnings and discounted cash flow as income methods, recommends a cross-check method where possible, and expects a report to explain why the chosen method is the most suitable. The table below is a general summary of how each method is used in practice, not the ATO's own list.

Capitalisation of future maintainable earnings is what most people mean by valuing a business on its profits: the valuer normalises the earnings, decides what level the business can maintain, then applies a capitalisation multiple supported by evidence and explained in the report. The multiple carries great weight, which is why the ATO lists a lack of support for the discount rate or capitalisation multiple among the common problems it sees. A multiple from an article proves nothing until it is tied to this business's risk and prospects.

Discounted cash flow is only as good as its forecast. It suits a business whose future will differ from its past, and forecasts prepared by one party deserve particular care.

Net assets suits holding entities and businesses whose profits are modest compared with their assets. It is also a useful cross-check: if earnings cannot justify more than what the assets would fetch, the net assets figure may be the better guide.

Rules of thumb ignore what sets one business apart, such as its true profit after a proper wage for the owner, owner dependence, customer concentration and the lease. They cannot be tested against the business being valued, so a report that relies on one is easy to challenge.

How are business earnings normalised?

Reported profit is rarely what a buyer would earn, because owners reasonably run their businesses to suit themselves and their tax position. Normalisation puts the profit on a commercial footing, and small changes here move the value. Common adjustments:

• Owner's wage: replace what the owner was paid with a commercial wage for the work done, since a buyer would have to pay someone to do it.
• Family wages: adjust to a market rate for the work actually done.
• Private expenses: add back personal costs run through the business, where the records support it.
• Related-party rent: adjust rent paid to the owners or their trust to market rent.
• One-off items: remove unusual income or costs, such as a settled dispute or an insurance payout.
• Financing: remove interest, so the business is valued before debt.
• Discontinued or new activities: adjust so the earnings reflect the business as it now stands.

If one party believes the business earns cash that never reaches the accounts, raise it with your lawyer: it is a disclosure and evidence issue, and the valuer can reflect it only with reliable evidence. Both parties have a duty of full and frank disclosure (sections 71B and 90RI of the Act, and rule 6.01).

Worked example: normalising one year's profit

Illustrative only. The business and every figure are fictional, and amounts are in Australian dollars.

A joinery company owned by Party A reports a net profit before tax of 310,000 for the latest year.

The adjustments run both ways. A normalisation that only ever moves the figure in one direction is a warning sign, whoever prepared it.

Worked example: maintainable earnings

Illustrative only, continuing the same fictional company.

A simple average gives 225,000. But if the company's largest customer, a quarter of its sales, left two months after year end, maintainable earnings may now be below all three years; and if the latest year reflects a permanent step up, an average understates the business. The ATO lists the inappropriate use of averaging among the common problems it sees in valuations. Maintainable earnings are a reasoned view of the future, informed by the past.

How do goodwill and owner dependence affect the value?

In valuation terms, goodwill is the value of a business above its identifiable net assets: the reason a buyer pays more than the equipment, stock and cash are worth. It comes from location, reputation, systems, staff, contracts, customer relationships and the skills of the people in the business. The family law question is: how much of that value would a buyer actually get if the owner stepped away?

Valuers test this by asking whether key customers would stay after a handover, whether a manager on a market wage could do the owner's job (as the wage adjustment assumes), whether a buyer would insist on a restraint, and how concentrated sales are. Owner dependence does not make a business worthless, but a buyer would usually pay less, insist on a longer handover or pay over time. Where profits depend almost entirely on the owner's personal skill, a business can be worth little more than its net assets even though it supports a good income.

Much of what is written about goodwill comes from tax law. The ATO's ruling TR 1999/16 explains the meaning of goodwill for capital gains tax, drawing on the High Court's decision in FC of T v Murry (1998). That is tax law. How the Court treats a business whose value or income depends on one person's skill is a question for the Court under the Family Law Act, and for your lawyer to explain. The valuer's role is to show clearly what would and would not transfer to a buyer, and what the owner's work is worth as a wage. See also goodwill and owner dependence.

How are minority interests, control and discounts handled?

Owning shares is not the same as controlling a company. A holder with control can usually decide, directly or through the board, who runs the business, what is paid out and whether it is sold. A minority holder often cannot, and a buyer may pay less than a straight share of the whole for that reason, especially where the constitution or a shareholder agreement restricts transfers.

Valuers therefore consider exactly what interest is being valued and its rights (the ATO's guidance expects a valuation of an interest to specify both), who controls the entity and how the parties' holdings combine, the constitution, trust deed or shareholder agreement, and whether any discount for lack of control or marketability is appropriate at all. Discounts are not automatic: they depend on the facts and the purpose of the valuation, and any discount should be explained and supported in the report.

Where the parties together own all the shares, or all the shares stay within the family, valuing each spouse's parcel in isolation can produce a figure unrelated to the family's real position. Where one party holds a small stake alongside unrelated shareholders, control and marketability can matter much more. Whether an interest is valued as a straight share of the whole (a pro rata basis) or on a stand-alone basis is a matter for the instructions and, ultimately, for the parties and the Court. If in doubt, ask the valuer to show both, with reasons.

How do loan accounts and debts change the value of your interest?

The value of the business as a whole, sometimes called enterprise value, is not the value of the shares. To get from one to the other, the valuer deducts debts, adds surplus assets not needed for trading, and deals with every loan account.

Worked example: from business value to each party's position

Illustrative only. A different fictional company, owned equally by Party A and Party B, with amounts in Australian dollars.

A valuer has concluded that the business, as a whole and before debt, is worth 900,000.

Together the two positions total 810,000: the business (900,000), less the bank loan (150,000), plus the surplus cash (60,000). The loan accounts move value between the parties and the company, but they do not create or destroy it. Two lessons follow:

1. Count every loan account once, on both sides. Listing Party A's loan of 100,000 as Party A's asset without deducting it inside the company overstates the property pool by 100,000.
2. Test whether debit loans can be repaid. If Party B could not realistically repay the 40,000, the company's asset, and so the shares, are worth less.

Should you use a single expert or your own expert?

If your matter is in court, or is expected to be, expert evidence is governed by Part 7.1 of the Rules. Its purposes include having expert evidence given by a single expert witness where practicable and without compromising the interests of justice, and avoiding the cost of appointing more than one expert (rule 7.02). A single expert witness is one appointed by agreement between the parties or by the Court (rule 1.05).

Even before proceedings, the pre-action procedures say that, if practicable, parties should agree to obtain a report from a single expert witness instructed by both of them, and the Central Practice Direction's core principles say a single expert should be engaged when appropriate.

How a single expert works

• Appointment. The parties can jointly appoint a single expert and rely on the report without the Court's permission (rule 7.03), or the Court can order one, appointing a person only with their consent (rules 7.04 and 7.05).
• No private contact. A party must not communicate with a single expert alone, except as the Rules permit, and any communication must go to all the other parties engaging the expert at the same time (rule 7.03).
• Written instructions. Instructions must be in writing, set out the issues and give full and frank disclosure of helpful information and documents. The party instructing must make sure the expert has a copy of, and has read, Divisions 7.1.4 to 7.1.6 of the Rules, and the expert works from an agreed statement of facts or, failing agreement, each party's own (rule 7.13).
• Another expert needs permission. Relying on another expert on the same issue needs the Court's permission, which may be given for a substantial body of contrary opinion, matters unknown to the single expert, or another special reason (rule 7.08).

Each party's own expert

Relying on any other expert needs the Court's permission (rule 7.10). The supporting affidavit must explain any attempt to agree on a single expert, the issue, why the evidence is necessary, the expert's field and qualifications, and any previous connection with the party (rule 7.11). Where two or more experts give evidence on the same question, they must confer at least 28 days before trial and prepare a joint statement of what they agree and disagree on, and why; their agreement binds the parties only if the parties expressly agree to be bound (rule 7.31).

For the practical steps, see single expert business valuations in family law and the joint letter of instruction template.

Settlement valuation or expert report: which do you need?

A valuation for negotiation and a report for court do different jobs.

A settlement valuation gives the parties a reasoned, independent figure to negotiate with, between lawyers or at mediation. The Court expects parties to be as informed as possible before any dispute resolution event, including by obtaining any required valuations, and before a court-based event such as a conciliation conference, the parties must provide a valuation or market appraisal of any asset whose value is in dispute, unless the Court directs otherwise (Central Practice Direction, paragraphs 6.30 and 6.36).

An expert report is prepared for filing or reliance in proceedings. It is instructed in writing under Part 7.1, addressed to the Court and the instructing parties, and verified by an affidavit of the expert (rule 7.21). It must give the reasons for its conclusions, the methodology, the expert's qualifications, the facts and assumptions relied on, and a summary of any range of opinion (rule 7.22).

At Family Law Valuations, these are two separate reports:

The Settlement Valuation is prepared for negotiation and mediation purposes. It is not prepared for filing or reliance as expert evidence in court. Engagement for the Family Law Expert Valuation is subject to an initial conflict and suitability assessment, review of the proposed instructions and acceptance by the appointed expert. If you start with a Settlement Valuation and later need the expert report, the full settlement fee is credited when you upgrade within three months, so you pay only the difference: $3,000 + GST after a $1,495 Settlement Valuation, $2,000 + GST after a $2,495 one or $1,000 + GST after a $3,495 one (over $10 million turnover, the difference is quoted in writing).

With no proceedings, a Settlement Valuation is usually the proportionate choice. With proceedings under way or expected and the value disputed, you are likely to need an expert report under Part 7.1, ideally from a single expert. The report finder can help, and settlement valuation or court expert valuation compares the two in detail.

What can you do if you disagree with a valuation?

First separate errors of fact, such as a wrong revenue figure or a missed loan account, from differences of opinion, such as a capitalisation multiple you think is too high.

For a settlement valuation, send factual corrections with the supporting documents. At Family Law Valuations, each report includes one round of factual corrections. Differences of opinion are then for negotiation, using the reasoning the report sets out.

For a single expert's report in proceedings, the Rules provide these steps:

1. Conference. Within 21 days after receiving the report, the parties may agree in writing to confer with the expert to clarify it, but must not interrogate the expert (rule 7.25).
2. Written questions. Questions may be put once only, in writing and only to clarify the report, within 7 days after a conference or otherwise within 21 days after receiving the report. They must be copied to each other party and must not be vexatious, oppressive or unreasonably burdensome (rule 7.26).
3. Answers. The expert answers within 21 days after the later of receiving the questions and the fees being paid or secured, and the answers become part of the report (rule 7.27). The party asking pays for them (rule 7.28).
4. Missing information. Raise it promptly. The expert must consider all material facts, including those that detract from the opinion, and must give written notice of any change of opinion (rule 7.18).
5. Another expert. Ask the Court for permission on the grounds in rule 7.08.
6. Cross-examination. Tell the expert in writing at least 14 days before the hearing or trial that they must attend; unless the Court orders otherwise, you pay for their attendance (rule 7.09). The Court's information on expert witnesses describes the Court process, such as cross-examination, as the appropriate way to challenge expert evidence.

There is more in what if you disagree with a business valuation.

What documents does a business valuer need?

Before the first court date, each party must serve their 3 most recent taxation returns and assessments, the last 4 business activity statements if they have an Australian Business Number, and, for any partnership, trust or private company in which they have an interest, its 3 most recent financial statements and last 4 business activity statements (rule 6.06(7)). The Court's guidance adds company annual returns and constitutions, trust deeds and partnership agreements. A valuer will usually ask for more:

If the records sit with the other party, raise it with your lawyer. The duty of full and frank disclosure also applies while separated parties prepare for proceedings (sections 71B and 90RI), the Act notes that the Court can take a failure to disclose into account in its property orders and costs orders, and where an expert needs information that only one party can reasonably get, the Court can order that party to provide it (rule 7.16). The full checklist is in documents needed for a family law business valuation.

What tax and transfer questions should you raise with your adviser?

A valuation gives the value of an interest, not the after-tax cost of transferring or keeping it. Raise these points with your lawyer and tax adviser before the terms are fixed. This section is not tax advice.

The relationship breakdown rollover

Subdivision 126-A of the Income Tax Assessment Act 1997 can defer capital gains tax when assets are transferred because a relationship has broken down. According to the ATO:

• it applies only to transfers under a court order (including consent orders), an arbitral award, a binding financial agreement or certain binding state and territory agreements, not a private or informal agreement;
• if it applies to an asset, you must use it;
• the person who receives the asset pays capital gains tax on a later disposal, as though they had owned it since their former spouse acquired it;
• there is no rollover for trading stock;
• where a company or trust transfers an asset to a spouse, the cost bases of interests in it are adjusted, and a transfer from a company to a shareholder or an associate may in some circumstances be a dividend under Division 7A, in which case capital gains tax does not apply.

Two assets with the same market value can therefore carry very different tax consequences for whoever receives them.

Capital gains tax changes from 1 July 2027

The ATO says the first stage of the capital gains tax reform is now law. For gains accruing from 1 July 2027, it replaces the 50% CGT discount for resident individuals, trusts and partnerships with cost base indexation, and introduces a minimum 30% tax for individuals on certain net capital gains. An asset held on 1 July 2027 and acquired earlier is treated as disposed of immediately before that date and reacquired, so its market value at that point may be needed, unless the apportionment method the Government is developing is used. The ATO says taxpayers should not obtain that valuation before the date, because a valuation cannot be forward-looking.

Questions to take to your adviser

1. Will the rollover apply to what is being transferred, what cost base comes with it, and is anything, such as trading stock, outside it?
2. Could Division 7A apply to any transfer, payment or loan account?
3. How will the changes from 1 July 2027 affect the assets each of you keeps?
4. Will any state or territory duty, or GST, apply to transferring the business or the shares?
5. Should the settlement allow for tax that will fall due later?

How much does a family law business valuation cost, and how long does it take?

These are the fees for Family Law Valuations. They are fixed in writing before work starts and never depend on the value reached.

Settlement Valuation. The fee is $1,495 + GST for a business with annual turnover under $2 million, $2,495 + GST from $2 million to under $3 million or $3,495 + GST from $3 million to $10 million (over $10 million, quoted in writing before work starts). It covers one operating business or ownership interest, a review of the financial statements, normalisation, an appropriate method with a cross-check, an independent written report and one round of factual corrections. You receive a signed report in 2 business days for annual turnover under $2 million (3 business days from $2 million to $10 million). Where the fee is quoted in writing, the delivery date is agreed with you before work begins. The Settlement Valuation is prepared for negotiation and mediation purposes. It is not prepared for filing or reliance as expert evidence in court.

Family Law Expert Valuation. The fee is $4,495 + GST, with the delivery date agreed before work starts. It covers a review of the company, trust and loan arrangements, detailed normalisation, appropriate valuation methods with sensitivity analysis, an affidavit verifying the report under rule 7.21, an independent expert report prepared for filing or reliance in proceedings, and one round of factual corrections. Engagement is subject to an initial conflict and suitability assessment, review of the proposed instructions and acceptance by the appointed expert. The fixed fee applies to one reasonably straightforward business with complete and reliable records, and the scope is confirmed in writing before work begins.

Work outside the fixed fees is priced as follows:

• additional business or entity: $795 + GST
• formal questions, supplementary analysis and expert conferences: $650 + GST per hour
• remote court attendance: $650 + GST per hour, four-hour minimum
• interstate court attendance: $6,500 + GST per day, plus travel and accommodation at cost
• complex structures, forensic reconstruction, asset tracing and disputed financial records: quoted separately

Delivery times run once payment and all required information are in. The fees page has the detail, and how much does a family law business valuation cost explains what drives the cost.

Who can value a business in a divorce, and how do you choose?

Australia has no formal admissions board for business valuers, as the ATO's market valuation guidance notes. The ATO looks instead for a valuer who is suitably qualified and experienced for the asset, objective and properly instructed. For court, an expert is an independent person with relevant specialised knowledge based on training, study or experience (rule 1.05). When permission is sought for a party's own expert, the Court can consider whether that knowledge is relevant to the issue and appropriate to the value, complexity and importance of the proceeding (rule 7.11).

What to look for:

1. Independence. No previous connection with either party or the business, or full disclosure of any, and a conflict check before anything substantive is discussed.
2. Relevant experience. Valuing private businesses, and interests in companies, trusts and partnerships, is a different skill from appraising property or preparing tax returns.
3. A method you can follow. The reasons for the method, the adjustments, the assumptions and the information relied on, with a cross-check where possible.
4. A fixed scope and fee in writing. The ATO's guidance expects instructions to establish that any fee does not depend on the outcome of the report.
5. Familiarity with Part 7.1. Essential if the report may be used in proceedings.

The business's usual accountant knows the figures and the valuer will need their help, but if they act for one party, the other may not accept them as independent. A broker's view of a likely asking price, or a real estate appraisal, serves a different purpose.

Family Law Valuations is a business valuation practice that does this work only. Reports are prepared by suitably qualified business valuers, independent of both parties. Every engagement begins with a conflict check, the fee is fixed before work starts and never depends on the figure, and you are told who will prepare and sign the report, with their qualifications and experience, before work begins. There is more in who can value a business for a family law property settlement.

What are the most common mistakes?

1. Treating a rule of thumb or a quick estimate as the value. It can start a conversation, but it is not evidence.
2. Valuing the profit in the tax return. Without normalisation, wages, private expenses and related-party rent can push the figure either way.
3. Counting loan accounts twice, or not at all.
4. Ignoring owner dependence. A business that cannot run without its owner is worth less to a buyer than its income suggests.
5. Relying on an old valuation. The Court looks at existing property, and trading changes.
6. Holding back documents. Both parties owe full and frank disclosure, and gaps in the records weaken the valuation.
7. Talking privately to a single expert. The Rules prohibit it (rule 7.03).
8. Starting without agreed, written instructions. Unclear instructions produce a report that answers the wrong question (rule 7.13).
9. Assuming your own expert's report can simply be used in court. It needs the Court's permission (rules 7.08 and 7.10).
10. Forgetting tax. The rollover, Division 7A and the changes from 1 July 2027 can change what each party really receives.
11. Missing the time limits. Applications are due within 12 months after a divorce order takes effect, or 2 years after a de facto relationship ends, unless the Court grants leave or the other party consents (s 44).

Frequently asked questions

Who pays for the valuation?

The parties agree who pays. For a single expert in proceedings, the parties are equally liable for the expert's reasonable fees unless they agree or the Court orders otherwise (rule 7.06). Where one party engages a valuer alone, the fee is agreed in writing with that party.

Do we need a valuation if we agree on the value?

Not necessarily. If you both understand the records and genuinely agree, a formal valuation may not be proportionate. Ask your lawyer before an agreed figure goes into consent orders or a financial agreement.

Who can value a business in a divorce in Australia?

There is no formal admissions board for business valuers, so look for independence, experience valuing private businesses, a method explained in writing and a fee that does not depend on the result. In proceedings, an expert must be independent with relevant specialised knowledge, and relying on a party's own expert needs the Court's permission (rules 1.05 and 7.10).

Can I speak to the single expert on my own?

No. A party must not communicate with a single expert witness alone, except as the Rules permit, and any communication must be given to all the other parties engaging the expert at the same time (rule 7.03).

Is the business valued at the date of separation or today?

Current values matter, because the Court identifies existing property and liabilities (s 79(3)(a)). The value at separation can also be relevant, for example where one party has run the business alone since, so ask your lawyer which dates the instructions should cover.

What if the business is in a family trust?

The trust's business and assets are valued in the usual way. How they are treated in the settlement is a legal question that usually turns on control, and each party must disclose trusts they control or can benefit from (rule 6.06(2)(f)).

What if the other party refuses to provide the business records?

Raise it with your lawyer. Both parties owe full and frank disclosure, and the Court can order a party to provide information an expert needs that is not reasonably available to the other party (rule 7.16).

Is a Settlement Valuation an expert report for court?

No. The Settlement Valuation is prepared for negotiation and mediation purposes, not for filing or reliance as expert evidence in court, and it is not verified by affidavit under Part 7.1. A valuation can still be exchanged before a court-based dispute resolution event, because the Court's practice direction asks for one where the value of an asset is disputed. If proceedings follow and you need expert evidence, you can upgrade to a Family Law Expert Valuation within three months and have the settlement fee credited.

How long does a valuation take?

For a Settlement Valuation, you receive a signed report in 2 business days for annual turnover under $2 million (3 business days from $2 million to $10 million). Delivery time starts once payment and all required information have been received. For a Family Law Expert Valuation, the delivery date is agreed before work starts.

Do I need a valuation for mediation?

If the business's value is disputed, a valuation usually makes mediation more productive, and the Court expects parties to obtain any required valuations before dispute resolution. See business valuation for mediation.

What should you do next?

The right report depends on where your matter stands and what is in dispute. Book a free 15-minute consultation to talk it through. For negotiation and mediation, the Settlement Valuation gives both of you an independent, signed figure. For proceedings, the Family Law Expert Valuation is prepared for filing or reliance in court. Fees are on the fees page, and lawyers can find how to instruct us on the page for family lawyers.

This guide is general information about business valuations in Australian family law property matters. It is not legal, tax or financial advice. The Act and the Rules are cited as in force from 10 June 2025, and ATO guidance as current at publication. Law changes, and how it applies to you is a question for your lawyer and tax adviser.