ICAEW.com works better with JavaScript enabled.

This is exclusive content

Divorcing parties look to forensic accountants for help

With divorcing parties increasingly likely to own assets via corporate structures, family lawyers are turning more and more to forensic accountants for help.

This article looks at recent trends in valuation issues on divorce and, in particular, at Mr Justice Mostyn's recent decision in the case of WM v HM [2017] EWCA Civ 41.

In deciding how to divide assets, the Court applies a statutory checklist found in Section 25(2)(a) of the Matrimonial Causes Act 1973. The “section 25 factors” include an assessment of  the income, earning capacity, property and other financial resources of each party at the time of trial and in the foreseeable future. Corporate assets fit squarely within the resources to be considered as re-confirmed by Lord Sumption in Prest v Petrodel Resources Limited and Others [2013] UKSC 34 when he said the following.