Most people who need a business valued after separation need one of two things. Either they need a clear, independent figure to negotiate or mediate with, or they need an expert report that can be relied on in court. The two are prepared differently, cost different amounts and serve different purposes. Choosing between them is the first decision in most matters, and it is worth getting right.
Two reports, two jobs
A valuation for negotiation and a valuation for court answer the same underlying question: what is the business, or the interest in it, worth. What differs is who the report is written for, the conditions under which it is prepared and what it can be used for. Neither is a lesser version of the other. One is a tool for reaching agreement; the other is evidence.
The Settlement Valuation
The Settlement Valuation is a fixed-fee independent valuation, at $2,495 + GST, prepared for private negotiations, mediation, property-settlement discussions, establishing the value of a business within the asset pool, solicitor and accountant review, and assessing whether a more extensive expert report is required.
It includes the valuation of one operating business or ownership interest, a review of the financial statements and supporting information, normalisation of the business earnings, an appropriate valuation methodology with a cross-check, an independent written valuation report and one round of factual corrections. The draft report is delivered within 5 to 7 business days after payment and receipt of all required information.
It is prepared for negotiation and mediation purposes. It is not prepared for filing or reliance as expert evidence in court. That is not a limitation hidden in the fine print; it is the definition of the product. It is not prepared under formal or joint instructions, it does not address the expert-evidence requirements that apply in court proceedings and it is not signed as an expert report.
The Family Law Expert Valuation
The Family Law Expert Valuation, $4,495 + GST, is for matters where the valuation is intended for filing or reliance in court. It will be delivered by a suitably qualified business valuer whose overriding duty is to the Court. The expert does not act as an advocate for either party.
Engagement is subject to an initial conflict and suitability assessment, review of the proposed instructions and acceptance by the appointed expert. It includes the valuation of one operating business or ownership interest, a review of the relevant company, trust and loan arrangements, detailed earnings normalisation, appropriate valuation methodologies with sensitivity analysis, the expert declaration, an independent expert report prepared for filing or reliance in proceedings and one round of factual corrections. The delivery date is agreed with you before work begins, and runs from payment and receipt of all required information. It is prepared to address the applicable expert-evidence requirements in the specific engagement.
Both fees are fixed for one reasonably straightforward business with complete and reliable records, and the scope is confirmed before work begins. Additional businesses or entities, urgent turnaround, formal questions, expert conferences and court attendance are priced separately on the fees page, and complex structures, forensic reconstruction, asset tracing and disputed financial records are quoted separately.
How to tell which you need
Four questions settle most cases.
Is the matter before the Court?
If proceedings have started, the value of the business may need to be established by expert evidence, and the Settlement Valuation is not the right tool. Your lawyer will advise on what the Court requires.
Has a single expert been agreed or ordered?
If the parties have agreed, or the Court has ordered, that one expert will value the business for both sides, that is an expert engagement on joint instructions. The Family Law Expert Valuation applies.
Are you negotiating or mediating?
If proceedings have not started and the parties are trying to reach agreement, directly, through solicitors or at mediation, the Settlement Valuation is prepared for exactly that use. If the parties reach agreement on it, nothing further is needed.
What does your lawyer say?
Whether a report will be needed as evidence, and in what form, is a legal question. A valuer can describe what each report is prepared for. Your lawyer can tell you which your matter requires. If you do not yet have a lawyer, the enquiry form lets you choose "Not sure" and we will explain what each service is for before anything begins.
Moving from one to the other
A matter that starts in negotiation can end in court. If you first obtain a Settlement Valuation and later require a Family Law Expert Valuation, the full $2,495 + GST settlement fee is credited when you upgrade within three months, so you pay only the $2,000 + GST difference.
Two things follow. The expert report is still a separate engagement: it is subject to the same conflict and suitability assessment, and the appointed expert independently reviews the material and forms their own opinion. And where an expert report was always going to be required, starting there is usually the better path. We will say so at the scope stage rather than let you begin with the wrong tool.
The cost of choosing wrongly
Choosing the Settlement Valuation when the matter needed expert evidence means holding a report that cannot be relied on for the purpose you now need and commissioning an expert report, although the settlement fee is credited if you upgrade within three months. Choosing the Family Law Expert Valuation when a negotiation would have settled on a Settlement Valuation means paying more, waiting longer and working through instructions that were not needed. Neither outcome is a disaster, but both are avoidable with a short conversation about where the matter stands.
What both reports have in common
Whichever applies, the valuation is reached the same way: independently, from the evidence, with every adjustment and assumption explained. Our role is to determine a supportable value, not to produce the highest or lowest number for either party. The report is written so the other side can follow the reasoning, because a figure that cannot be explained cannot be relied on by anyone.
Where to from here
If you are negotiating or mediating, start a Settlement Valuation. If the matter is before the Court or an expert report is expected, request an Expert Valuation. If you are not sure, tell us about the matter and we will confirm the appropriate scope before anything begins. The fees page sets out what each service includes.
This is general information about the two services and how they differ. It is not legal, taxation or financial advice. The appropriate valuation scope depends on the circumstances of the matter and any applicable instructions or court orders.
Not sure which report the matter needs? Answer two short questions for an indicative starting point.
This guide provides general valuation information. The report scope and any legal or procedural requirements depend on your matter and should be confirmed with the relevant advisers.
Sources
- Federal Circuit and Family Court of Australia (Family Law) Rules 2021, Part 7.1 Expert evidence (opens in a new tab), Federal Register of Legislation
- Expert witnesses fact sheet (opens in a new tab), Federal Circuit and Family Court of Australia
- Evidence Act 1995 (Cth), sections 76 and 79 (opinion evidence) (opens in a new tab), Federal Register of Legislation
Sources are provided for reference. They are not legal advice, and whether and how they apply to a matter is a question for your lawyer.