Business valuation in divorce: how to reach a fast and fair agreement

Divorce is one of the most common situations where a business valuation makes sense.

In practice, however, we see one recurring mistake: the parties go straight to a court-appointed expert — instead of first clarifying what value they are actually talking about.

The result is unnecessary disputes, higher costs and lost time. Yet there is a much simpler way.

Contents

• 1. Why disputes about a company's value arise
• 2. Why a court expert should be the last step
• 3. How SJM FAIR works in practice
• 4. Recommended step-by-step procedure
• 5. How much it actually saves
• Conclusion

1. Why disputes about a company's value arise

In divorce cases we very often encounter the following:

• one spouse owns the business and knows its real limits
• the other works from a gut feeling or a media-driven idea of its value

Each side therefore operates with a different number. This leads to:

• overvaluation or undervaluation
• communication that quickly escalates
• a dispute that did not need to arise at all

A good valuation has exactly the opposite effect. It helps prevent disputes and sets a common basis for negotiation.

2. Why a court expert should be the last step

An expert opinion has its place — but only when:

• the parties are unable to reach an agreement
• the dispute is being resolved by a court

The problem is that if you turn to an expert right at the beginning:

• the process is significantly prolonged
• costs are many times higher
• relationships between the parties deteriorate further

On top of that, a business valuation is not a single precise number, but a professional estimate based on methods and assumptions.
That means even a court expert does not deliver absolute truth — only one of several possible professional views.

3. How SJM FAIR works in practice

That is why it makes sense to start differently: first an independent valuation at fair value.

That is:

• a valuation based on the principle of customary price
• independent of either party
• explained in a clear, understandable way

What it brings:

• both parties work with the same data
• assumptions and gut estimates disappear
• the discussion moves to a rational level

In practice, in a large share of cases the parties manage to reach an agreement on the basis of this initial valuation alone.

4. Recommended step-by-step procedure

The following approach has proven itself in practice:

1️⃣ Independent valuation at fair value

• fast
• affordable
• a basis for negotiation

2️⃣ Agreement between the parties

• ideally with a lawyer or mediator
• using the valuation as an objective basis

3️⃣ Only if the agreement fails → court expert

• court proceedings
• an expert opinion as binding evidence

5. How much it actually saves

The difference is fundamental:

• time — days vs. months
• costs — tens of thousands vs. significantly more
• stress — agreement vs. dispute

In addition, a fast and affordable valuation makes it possible to decide in time and with less pressure.

Conclusion

A business valuation in divorce is not the problem. The problem is when and how you approach it.

❌ Starting with a court expert means heading straight into a dispute

✅ Starting with SJM FAIR means giving agreement a chance

The most effective path from practice is first an independent valuation, and only afterwards, if needed, a court expert.

And often, that second step never happens at all.