Family Court Valuations are a specialised field of Valuation Practice.  When a Private Company or beneficial interest in a Business is involved, valuation can be oftentimes complex, but invariably adversarial. 

 

Since 2007 we have been completing 'Expert Witness' Fair Market Value Reports for matters in the Family Court. 

 

Our approach is based on the "Fair Market Value" methodology ie. the Value of the Tangible (eg. equipment, vehicles etc) and the Intangible (Goodwill, Profit) Assets of the Business.  (Legitimate liabilities need to be paid out to arrive at the asset 'pool' price ). 

 

'Fair Value' which estimates the value of shares in a private company including the liabilities does not represent what the open market would pay for the business.  Fair Market Value is defined as:  

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“The most probable price which an asset should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

• buyer and seller are typically motivated;

• both parties are well informed or well advised, and acting in what they consider their best interests;

• a reasonable time is allowed for exposure in the open market;

• payment is made in terms of cash in Australian dollars or in terms of financial arrangements comparable thereto; 

• the price represents the normal consideration for the asset sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

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