Forensic Accounting: Valuing Businesses for Family Law

This month Ben and Heather talk to forensic accountant Suzanne Delbridge about valuing a business when separating.Suzanne Delbridge is the Director and Founder of Delbridge Forensic Accounting in Newcastle and a very experienced forensic accountant.  For listeners who may not know, a forensic account is specially trained to prepare financial information for a court of law.At the start of the podcast, Suzanne clarified exactly what a forensic accountant does and why they are absolutely critical when valuing a business.  Ben and Heather then delved into the following questions with Suzanne:When is it appropriate to use a forensic account, rather than simply using your company or personal accountant? (Clue:  it's never appropriate to use your company or personal accountant to value a business in divorce proceedings!)What are the different methods of valuation?How does an accountant differentiate between a business with significant value and one that is just a vehicle for owner income?Why do we sometimes see a business valued at close to nothing, when similar businesses are advertised a high prices?How do forensic accountants take into account lack of control or difficulty of sale when valuing a portion of a shared business?Can a forensic accountant identify if a business is being used to hide wealth?Do forensic accountants need to be involved in valuing self managed superannuation funds?Can the settlement structure in a divorce really make a significant difference to either party's tax bill?Episode note (important): This episode was recorded before changes to property settlement provisions commenced on 10 June 2025. The way the Court determines a just and equitable outcome in property matters has been updated since this recording, so some legal references in this episode may now be out of date. Please seek current legal advice and refer to the Federal Circuit and Family Court of Australia and Attorney-General’s Department resources for the latest information.