What is a business worth in a divorce? A business valuation in a divorce can only answer that question once it is clear which right is included in the division of assets: shares, the assets and liabilities of a sole proprietorship, a partnership share or a monetary settlement claim. After that, the reference date, the valuation brief, the financial information and the assumptions must be recorded. The book value on a balance sheet is not automatically the value the partners should use between them.
Written by Öznur Batur (family law aspects) and Onur Arslan (property law aspects), attorneys at Arslan Advocaten. Legal review: 28 September 2026. General information is not legal advice about your own situation.
First read the basics on divorcing with your own business. This article deals only with the valuation phase and how to read a report critically.
What exactly are you asking an expert to value?
In a private limited company (bv), a partner’s shares may be relevant, while the bv itself owns a shop, a property, stock or a participation in another company. In a holding structure, intercompany loans and participations must be understood to avoid double counting. In a sole proprietorship, there is no share in a separate legal entity; the assets, liabilities and any transferable economic value require a different analysis. In a general partnership (vof), a partnership agreement may contain rules that are important for value and transfer.
The family law question comes first: does the right fall within a community of property (gemeenschap van goederen), must the value be settled under a prenuptial agreement (huwelijkse voorwaarden) or is there a reimbursement right? Do not let a valuation expert assume the legal outcome of that discussion. If necessary, formulate alternative briefs for different legal scenarios.
The reference date can change the outcome
Suppose a business wins a large contract, or loses an important client, in the year after the divorce petition is filed. Which event belongs to the value depends on the applicable reference date and the legal analysis. The date on which the community was dissolved and the date for valuation are not necessarily the same. The parties can make agreements; a court can assess a valuation date within the relevant legal rules.
So write in the brief: the object to be valued, the reference date, the annual accounts to be made available, the treatment of events after that date and the questions the expert must answer. A report with a figure but without these starting points is difficult to test.
Which figures say something about value?
An expert usually looks at several years of annual accounts and tax returns, recent interim figures, contracts, debts, cash flows and forecasts. A one-off windfall or setback can distort the picture. The same applies to an entrepreneur’s salary that differs from what a replacement director would cost.
Possible questions are: will clients stay if the entrepreneur leaves, how long do important contracts run, are there overdue investments, which financing must be repaid and does the bv have any special obligation? If the company holds real estate, the valuation of that property and its connection with the business operations are also relevant. A valuation of the property is then only one building block of the share valuation.
Why a method alone does not give an answer
An expert may estimate future cash flows, analyse comparable companies or transactions, examine the adjusted net asset position or combine methods. The value is partly determined by the quality of the underlying assumptions. A project with a contract that is about to expire, for example, calls for a different forecast than a business with recurring assignments and a broad spread of clients. A method called “DCF” does not make an unrealistic turnover forecast reliable.
Have the report explain why a method suits this particular business, and what happens when crucial assumptions change. Ask, for example, for a range with lower turnover, rising wage costs or a necessary investment. For a practice that relies heavily on one person, the expert must substantiate how clients or knowledge remain transferable. For a holding company with several subsidiaries, the valuations and intercompany receivables must be consistent with one another. The aim is a verifiable opinion, not a seemingly exact result down to the euro.
Goodwill and personal effort
Not every euro of future profit can be transferred to a buyer. A law or advisory practice that relies heavily on the personal reputation and effort of one professional may be valued differently from a business with transferable contracts, staff and independently functioning processes. Have the expert explain which part of the expected earnings relates to the business as a transferable whole and which assumptions they make about the entrepreneur.
A small business can also have value that does not literally appear on the balance sheet. Conversely, high turnover without lasting profit may say little about value. A critical valuation therefore shows the chosen method and how sensitive it is to other assumptions.
Value is not the same as an available buy-out sum
A business can be valuable while money is tied up in stock, properties or necessary working capital buffers. The question of what the shares are worth is not the same as how much the entrepreneur can pay personally today. A buy-out arrangement may require financing, instalments or setting off against other assets. Restrictions on dividend distributions and agreements with lenders may also play a role.
So in negotiations, set two calculations side by side: the substantiated claim and a workable payment scenario. Discuss security for the receiving partner and what happens if financing is not obtained. A high valuation without a feasible way to carry it out can prolong the conflict.
Watch out for double items and deferred liabilities
Suppose a director and major shareholder (dga) personally owes € 100,000 to the bv. The bv’s accounts may then show a receivable; the personal overview may show a debt. The question is how the valuation report treats this receivable and what happens to the debt after the division. Anyone who increases the value of the shares by that receivable and also claims the same € 100,000 again as a separate claim may be calculating incorrectly. The same risk exists with loans between a holding company and an operating company, or with a property whose value is included both in the subsidiary bv and separately in the total.
Taxes and future obligations deserve a separate explanation. Not every theoretical tax claim may simply be deducted one for one from the share value; the likelihood, timing and way in which the claim materialises are relevant. Have a tax adviser check the tax starting point and give the valuation expert a consistent brief. The lawyer can then explain which amount belongs to the division of assets without presenting a tax estimate as an established right.
What do you do if reports differ?
Compare the briefs, reference dates, source figures and assumptions before you negotiate about a single final amount. Do the experts differ because one takes a business property into account and the other does not? Does one report use a growth forecast without substantiation? Has a debt at group level been counted twice? Ask the experts to respond to those specific differences or consider one jointly appointed, independent expert with clear questions.
Do not automatically ask for yet another report. Sometimes the missing records must be obtained first. For that, read no access to business information in a divorce.
With a joint expert, give both parties the opportunity to point out factual errors in the information provided. Record in advance whether the expert may request additional documents independently, how confidential data is handled and which questions they will and will not answer. A report can determine value; it does not decide whether the shares are jointly owned or how a settlement clause (verrekenbeding) works legally. Keep those roles separate in the brief and when discussing the outcome.
Fictitious example. A bv shows fluctuating profits over three years. One report extrapolates the last peak year, the other uses a much lower profit without explanation. The discussion is not only about “high versus low”, but about structural turnover, replacement costs for the director and a contract that will soon expire. By making those assumptions visible, a range becomes easier to discuss. The eventual claim also depends on the matrimonial property regime.
From report to a workable agreement
A valuation report is a building block. The lawyer still has to determine which share or which claim legally falls within the settlement, which other assets are allocated and which amount remains payable between the parties. Agree whether an acknowledgement of debt, a right of pledge or other security is needed if the entrepreneur pays in instalments. Write down whether interest applies, when instalments fall due and what happens if the business is sold or goes bankrupt. The right security depends on the case and the existing bank arrangements.
Include any reservations precisely. A clause stating that “the final value will be determined later by an expert” must specify who chooses that expert, which documents are provided, which reference date they use, which questions they answer and how a dispute about their outcome is resolved. Without those elements, the divorce settlement agreement (convenant) may merely postpone the valuation battle. Also have the tax consequences of a share transfer or payment assessed before the agreement is signed.
The financial position of both parties can change after signing. A clear agreement on information, deadlines and default protects the receiving partner and gives the entrepreneur predictability for running the business. A calculation example in the report is no substitute for these implementation agreements.
Business valuation in a divorce: checklist for a usable report
- The object of valuation and the legal structure are described unambiguously.
- The reference date and any later events have been dealt with.
- Source documents and adjustments to the figures can be verified.
- Loans, current account (rekening-courant), participations and possible tax positions are visible.
- The report explains which goodwill or earning capacity is transferable.
- There is a sensitivity analysis for materially uncertain assumptions.
- The valuation result is not confused with liquidity or the capacity to pay maintenance.
Frequently asked questions
Is one year’s profit enough? Usually not for a reliable conclusion. The nature of the business and its structural results must be examined.
Can my ex’s accountant carry out an independent valuation? Assess the brief, any previous involvement and possible interests. In a disputed case, an independent expert may be more suitable.
Is goodwill always divided? That depends on the right being settled and on the transferability and substantiation of that value. Personal earning capacity requires careful analysis.
Does the valuer also decide what my ex receives legally? The expert examines financial value within a brief. The matrimonial property regime and any claims are legal questions.
What if my ex deliberately makes the business look less valuable? Gather annual accounts, recent figures and concrete indications for the disputed assumption. Have it assessed in a targeted way which information is needed; do not draw a final conclusion on the basis of suspicions.
Can I use the same value for maintenance? Not without a separate analysis. Business value is an asset; for maintenance, it is about the relevant income and financial capacity data. The underlying figures may overlap, but the purpose, period and assumptions differ.
Who pays for a joint valuation expert? Before the brief is given, agree who appoints the expert, which questions are asked and how the advance and final costs are borne. In court proceedings, other decisions on expert investigations and costs may follow. A brief agreed in advance can limit later discussion.
Öznur Batur and Onur Arslan can define the family law claim and the property law valuation question. The financial valuation itself may require an independent specialist. Discuss your case with the legal form, any prenuptial agreement and the figures already available.
Read more
- Division of assets in a divorce: business, property and debts
- Divorce with a bv or holding company
- Dividing a property portfolio in a divorce
Sources consulted: Rechtspraak: checklist for community of property (in Dutch), Rechtspraak: checklist for prenuptial agreements (in Dutch), Belastingdienst: transferring your business (in Dutch).
