Ask the Expert: Part 6 | Valuing a spouse's business

In the sixth part of our Ask the Expert: Valuing a business for divorce series, Malcolm Coomber provides guidance for spouses with limited visibility into the business, including red flags and investigative considerations.

Q: What if you’re not involved in your spouse’s business – can you still ensure a fair valuation?

Absolutely. It’s very common for one spouse to be primarily involved in the business while the other has limited visibility. That doesn’t mean you’re at a disadvantage. With the right professional advice, you can uncover the information you need to ensure a fair settlement.

Q: What are the key questions to consider in this situation?

• Do you want to continue sharing in the income or lifestyle benefits from the business? 

• Is joint ownership realistic or desirable? 

• Would a clean break and capital settlement be better? 

• Do you trust the declared value and profitability? 

Q: What if you suspect the business value is being understated?

That’s not uncommon. We’ve seen cases where income is delayed, costs are inflated, or assets are undervalued. In such situations, a forensic review may be necessary to uncover the true financial picture.

Q: What kinds of red flags do you look for?

• Sudden downturns in trading after separation 

• Income diverted or taken in cash 

• Overstated expenses or changed accounting treatments 

• Undervalued assets or hidden transactions 

• Personal spending disguised as business costs 

• Hidden accounts or overseas assets 

Q: How can a non-involved spouse protect their interests?

By working with experienced legal and financial professionals. We help clients understand the business, challenge questionable figures, and ensure that the valuation reflects reality – not just what’s been presented.