House Valuations Variation in divorce

[PPA90]

Hi all,

Going through a divorce. 13 years married. Got a mortgage free home. Stbxw has been offered 60% of the value of the house. However she wants the form e done aswell. No pension No saving. Business owner under limited company. Business is mostly intellectual. I’m the value of the company however have employees as-well to do some work on a part time basis.
I’m offering 60% value of the house. Is that a good offer? Two valuations from 2 estate agents I chose valued at £290k and £295k…. Her valuations are £340k and £350k as she’s told them what she wants. I’m being realistic with her in the price of the house as 2 doors away property sold for £255 in need of modernisation. Ours is done to a good standard… please can people share some ideas or opinions on what to do ..

Might be worth considering getting a RICS Surveyor to do a valuation. You'll have to pay (c. £300??) for this but they will be independent.

Are you in mediation ?

Sorry, to add.. whether that's reasonable to offer 60% depends on a lot of factors - are there children, if so what are the arrangements there? What are the relevant housing needs for you and your STBXW?

Hey

No children
I don’t have anywhere else to go live unless I rent which will be expensive as not a high earner.
60% offer so we don’t waste money on legal and end the stress .

I want to buy her out through a mortgage and personal loans from family and friends. Don’t have much in my savings to show on Form E

If there are no children why 60%?

You need to get a valuation done by the same kind of surveyor that values properties for mortgages i.e. not a sales valuation by a sales agent.

You will need to pay for it. Your exW should do the same and if there’s a discrepancy you can meet in the middle. Try RICS as a pp suggested.

If I was representing her I’d want your Form E. So many people say their businesses are worthless during divorce and it’s not true.

Don’t want the headache of going through solicitors etc

I will fill in Form E however I don’t know how to value my business

Trying to avoid cost on her side aswell hence 60%

We are not bitter about the divorce just the valuation of the house

Tell her that you can offer 50% of her valuation at £345k or 60% of your valuation at £295k. Let her pick.

Then both fill out the Form E and agree a fair settlement of both of your savings and assets.

You are being generous with the house but it does raise red flags that you aren't prepared to discuss any other assets. Full disclosure from both of you is the only fair way forward.

The form e needs to be done by both parties as how can a fair settlement be agreed otherwise? A judge is unlikely to sign off the financial consent order without a form e especially if you are doing a diy divorce rather than using a solicitor.

We will submit Form E aswell however I feel she’ll want more then what I’m proposing… business is worth my effort and profession

@PPA90

I will fill in Form E however I don’t know how to value my business

That’s what accountants are for.

Should I get my personal accountant to do it or do I hire someone independent.

As long as it is a robust valuation it doesn't matter what type of accountant they are.

Don't forget full disclosure of your pension amounts on the form e as that's often the asset where there is a lot of negotiation on how to split them fairly.

Do I put in personal loans from family and friends when I renovated the house. What proof do I need .

The Form E will ask you to declare the loans from anyone regardless of their relationship to you, so include those.

The business is simple - sole trader or limited?

If limited, use a valuation lawyer. They will perform a valuation based on future expected value - usually a DCF. When I’ve valued companies for divorce we use their share value but my clients are usually owners of listed companies so it makes it easier.

If sole trader it’s just your full PAT. If you take an income from the business through dividends etc then you can declare that as the business is separable.

I don’t think giving 60% of the house is smart.

I have a big loan from a friend of 30k

Limited company however our profits are less then 10k as I pay myself dividends. I’m also a self employed teacher doing tuitions.

It’s an educational services limited company providing after school clubs etc so the income is variable

Have you looked at the form e document as it's very detailed and will show you exactly what you need to include?

Yes I have been through the form e
Majority is irrelevant to me . Main thing is valuation of limited company.