Recent case G v T [2020] EWHC 1613 (Fam) looks determining the value of businesses as assets when deciding maintenance
![Recent case G v T [2020] EWHC 1613 (Fam) looks determining the value of businesses as assets when deciding maintenance](/resources/perch-resources/img6733-w320h240.jpeg)
Deciding how equity and assets will be split following a separation and divorce case can be a stressful experience for all. Spousal and child maintenance, pension division and future changes to support arrangements all need to be taken into account to give a fair solution to all.
Tensions can run high when there is insufficient funds to meet the needs of all, and also when a large amounts of shares, equity or assets are in question.
The recent case of G v T [2020] EWHC 1613 (Fam), where Nicholas Cusworth QC sat as a Deputy High Court Judge, looked at how tricky it can be to value businesses and shares when deciding spouse and support maintenance.
Issues included the date of the valuation of the business, how businesses operate in different ways, shareholders, business life spans, methods used to measure the value of shares and historic profitability. Businesses cannot necessarily just be considered a single, simple amount to easily split.
The article outlines just how difficult it can be to ensure fair division of assets following divorce or separation. As the judge says, it is: “not straightforward to form a view about which I can be sure that I would be satisfied in any circumstances.”
Arbitration and financial dispute resolution are alternative methods used to fairly and amicably split capital in a way to satisfy needs of clients.