The Covisory Group are a team of experts assisting both businesses and individuals. We provide a wide array of services that go beyond the realm of most Chartered Accountants and Advisors. We help our clients and their advisors with services and technical assistance to apply innovative knowledge and solutions to the challenges they face.

Talk to us first if you need help with a Relationship Property Agreement or Dispute. Our team have the experience and expertise.

Call or email us now

Mike Bradley | | +64 21 678 442

Marcus Diprose | | +64 21 424 443

Barry Tuck | | +64 21 988 048

Nigel Smith | | +64 21 377 280

Business and Share Valuations

Covisory’s Business Valuations team has extensive experience and expertise in assisting in the settlement of relationship property disputes.
Whilst Business and Share valuations are at the forefront of the independent expert assistance and opinions the team provides - acting for both Applicants and Defendants, as well as Court-appointed – their expertise and opinions also encompass.

  • the value of partnerships and trusts,
  • the value of other Relationship Property interests – e.g. shareholder and beneficiary current and loan accounts, the increase in the value of Separate Property when such is deemed Relationship Property, and
  • assessing the value of Economic Disparity claims.

Business and Share valuations have become even more complicated due to the economic fall-out from Covid-19. Many businesses will face fundamental changes in the markets they operate in, their operational practices and short to medium-term business outlook generally. This will add further complexity in assessing future maintainable earnings and an appropriate earnings multiple.

Having experienced prior economic downturns, combined with their market transaction business returns data, means the Covisory team is well placed to undertake Business and Share valuations in the current environment.

The past tells us that Business and Share valuations will in general drop as a result of the economic fall-out from Covid-19. Where parties have recently concluded settlement agreements or have had orders for property disputes made by the courts, those agreements or orders could well be reviewed if the value is significantly impacted by Covid-19, particularly if this is assessed to be a permanent diminution in value. Whether the diminution in value resulting from Covid-19 is temporary or permanent will form a critical judgement by the valuer in current day valuations.

Independent Trusteeships

Once an agreement has been reached on the value of the property to split between the parties and the actual amount going to each party, the parties will need to determine what structure will work best for them to hold those assets. In a lot of cases, this will be in a trust as opposed to holding the assets personally. A trust structure will help protect these assets against claims in the future, including future relationship property claims.

Covisory’s Trust team can help in this area with both helping with the formation of a new Trust and acting as an independent trustee. We act as an independent trustee for a wide range of clients, including those who have recently-separated. Often, we are acting as an independent trustee where the recipient of the asset does not have much experience in investing, and we can help clients in this area by involving professional investment advisors to help manage the assets.

In the event of a relationship property separation, both parties should review their Wills and put new ones in place. This step is often missed and can have ramifications going forward as in most circumstances each spouse is the executor of each other’s estate. A new Will, coupled with updated Enduring Powers of Attorney, need to be completed along with a new Trust.