Ask the Expert: Part 7 | Valuing your own business

In the last instalment of our Ask the Expert: Valuing a business for divorce series, Malcolm Coomber offers advice for business owners on protecting their business interests while ensuring a fair and transparent process.

Q: How can divorce affect a business owned by one spouse?

Divorce can be highly disruptive. In the short term, it can affect performance due to emotional strain and time away from the business. In the long term, if financial arrangements aren’t handled carefully, the consequences can be damaging for both the business and the individuals involved.

Q: Will I be forced to sell my business?

That’s very unlikely. Courts generally recognise that the business is often the main source of income and aim to preserve it. Instead of ordering a sale, they’ll factor the business’s value into the overall settlement – for example, one party might retain the business while the other receives the family home or a capital sum.

Q: What if the business is jointly owned by both spouses?

That’s not unusual, especially for tax reasons. But unless both spouses are genuinely involved, the spouse running the business should take early steps to protect it. That means being proactive, transparent, and strategic – not evasive or reactive.

Q: What practical steps should a business owner take?

• Take a realistic view of the business’s value early on to avoid unnecessary disputes. 

• Work with your lawyer from the outset – don’t wait to respond to court demands. 

• Avoid moving assets to shield them – courts can reverse such actions. 

• Offer voluntary disclosure to demonstrate good faith. 

• Understand how your ownership structure affects valuation. 

• Be aware of blended assets, like using a home as business security. 

• Know whether your business is capital-heavy or income-heavy – this affects how settlements are structured. 

Q: What’s your key message to business owners going through divorce?

Be proactive and get expert advice early. The goal is to protect the business while ensuring a fair outcome. With the right approach, it’s possible to preserve what you’ve built and move forward with clarity and confidence.