How do I value assets for financial disclosure?

Financial disclosure in family proceedings requires you to put a value on your assets. For some assets, getting an accurate figure is straightforward. For others, including pensions, businesses, and property, it requires more effort. The obligation is to provide your best assessment of the current market value of each asset at the time of disclosure.

Property

For the family home and any other residential property, the figure you need is the current open market value, which is what the property would be likely to sell for today between a willing buyer and a willing seller.

1. The most common approach for initial disclosure is to use recent comparable sales in the same street or postcode, available on Rightmove's Sold Prices or the Land Registry's online price paid data.
2. An estate agent's written valuation is a slightly more formal option and often costs nothing, since estate agents provide them in the hope of securing a sales instruction.
3. If the parties disagree significantly on the value of a property, the court may direct a formal written valuation by a Royal Institution of Chartered Surveyors (RICS) qualified surveyor. In many cases a single joint expert is appointed, meaning one valuer is agreed by both parties rather than each side having their own.
4. If a property is rented out, its investment value may also be relevant alongside its open market value.

For properties abroad, values must be converted to pounds sterling using a current exchange rate, noted on the form.

Pensions

Pensions are valued using their Cash Equivalent Transfer Value, or CETV. The CETV is the amount the pension provider would pay to transfer your pension rights to another scheme. It is the standard measure used in financial disclosure and in calculating the value of any pension sharing order.

1. Request your CETV in writing from each pension provider. Many have online request forms.
2. Allow several weeks, since pension providers have a statutory period of three months to provide a CETV under the Pension Schemes Act 1993, though many respond faster.
3. If you have a defined benefit or final salary pension, the CETV is particularly important and may significantly understate or overstate the true value of the benefit depending on market conditions. In high-value cases, a pension actuary may be instructed to provide a more detailed assessment.
4. State pension entitlement is disclosed but not typically subject to pension sharing orders.

Do not estimate or guess a pension value. The CETV must be provided to Form E as a documentary attachment. Using an estimate that turns out to be significantly wrong can create problems later in the proceedings.

Bank accounts and savings

Current balances are used for liquid savings and current accounts. You'll need three months of statements for each account, and the figure to use is the balance at the date you complete the form. If a balance fluctuates significantly month to month, it can be helpful to provide a brief explanation of why.

Investments and shares

1. Quoted shares and funds listed on a stock exchange are valued at their market price on a stated date, available from the investment platform or from financial data services.
2. Unit trusts and investment funds use the published unit price on a stated date.
3. For more complex investment structures, a current statement from the provider or investment manager is the starting point.

For National Savings certificates and premium bonds, use the current redemption value shown on the NS&I website.

Business interests

Business valuation is one of the most complex areas of financial disclosure. The approach depends on the nature of the business:

1. For a small service business with no significant assets, a common approach is to apply a multiple to annual net profit or turnover. This is inherently uncertain and often disputed.
2. For a business with identifiable assets (property, equipment, stock), net asset value — what the assets are worth minus what the business owes — may be the more appropriate measure.
3. In contested cases, the court will often direct a jointly instructed expert business valuer to provide a formal report.
4. For your own shareholding in a privately held company, you'll need to work from the company's most recent accounts and make a reasonable assessment of what your share is worth.

Business valuations are frequently the most disputed element of financial disclosure. If a significant business interest is involved and the case is contested, professional advice is particularly valuable.

Debts and liabilities

Debts are disclosed at their outstanding balance on the date of the form. For credit cards, use the balance on the most recent statement. For mortgages, use the balance shown on the most recent statement from your lender.

What if my spouse and I disagree about the value of something?

Disagreements about asset values are common. The court's approach is usually to:

1. Direct the parties to agree a jointly instructed expert (a single valuer instructed by both sides) where a formal valuation is needed.
2. Where parties can't agree on an expert, the court may appoint one.
3. In some cases each party commissions their own expert report and the court determines which valuation to prefer, or a figure between the two, at a final hearing.

Going through financial disclosure without a solicitor is difficult, particularly valuing pensions and business interests. Access to Justice is built for people in exactly this position, it helps you understand what each asset requires and what to do when figures are disputed. Try it free.

Frequently asked questions

Can I use an online property valuation tool for Form E?

Online automated valuations such as Zoopla's estimate can be a useful starting point, but they're not as reliable as estate agent valuations or RICS reports, particularly for unusual properties or in areas with low transaction volumes. If the property is a significant asset and its value is contested, a formal RICS valuation will be more credible.

What if my pension provider is taking too long to send the CETV?

Document when you requested it. Pension providers have a statutory three-month period to provide a CETV. If you're approaching your Form E deadline and the CETV hasn't arrived, explain this in the relevant section of the form and provide it as a supplemental document as soon as it arrives.

Do I need to value personal possessions like cars and furniture?

Yes, in principle. Household contents are typically disclosed as a single estimated figure rather than individually itemised. Vehicles are disclosed at their current market value, which can be assessed using services like Auto Trader's private sale valuation. As with every asset, the obligation is to give your best assessment of the current market value at the time of disclosure.

What is a single joint expert?

A single joint expert (SJE) is an independent professional, such as a surveyor or business valuer, instructed jointly by both parties to provide a neutral valuation. Both parties pay equally and share the report. Courts prefer this approach over each side having their own expert, since it reduces costs and avoids a competing battle of expert opinions.

Can the court disagree with a jointly instructed expert's valuation?

The court can depart from a jointly instructed expert's report, but in practice rarely does so unless there's a specific and well-founded reason to. Single joint expert reports carry significant weight precisely because both parties agreed to instruct the same person.

What year's accounts should I use to value my business?

The most recent set of finalised accounts is the starting point. If the most recent year is unrepresentative (unusually high or low due to a one-off event), it's common to use an average of the last two or three years. Provide the accounts as attachments and briefly explain the basis of your valuation.

This article provides legal information about the financial remedy process in England and Wales. It does not constitute legal advice. For advice about your specific situation, speak to a qualified solicitor.