11 June 2025

Expert Evidence in Divorce: When Is One Report Not Enough?

In financial remedy proceedings, expert valuation of businesses can make or break a case. But what happens when one party no longer agrees with the expert they jointly instructed? That was the question at the heart of JMD v SPD [2025] EWFC 154 (B), where the husband sought to challenge the Single Joint Expert (SJE)’s valuation of his business and persuade the court to allow him to instruct his own.

The case is a valuable reminder of how carefully the court guards the integrity and efficiency of financial remedy litigation—especially when it comes to expert evidence.

Background: A Joint Expert Disputed

The parties jointly instructed a forensic accountant to value the husband’s property development business. The SJE’s valuation (at £18.2 million) differed sharply from the husband’s own expectations, largely because the expert chose not to accept the valuations of the company’s property assets from a separate property valuer. The SJE took the view that these incomplete developments would not be sold at a forced sale value and based their assessment on full, completed values.

The husband’s position: this approach inflated the company’s value and failed to reflect the true economic reality. He argued that this divergence—plus the failure to communicate with the property valuer—was so significant that it justified a fresh expert.

The Legal Framework: Daniels v Walker and Beyond

District Judge Parker carefully applied the principles from Daniels v Walker [2000] and other authorities, including GA v EL [2023] EWFC 187 and Cosgrove v Pattison. The key points?

  • A party may seek permission to instruct a further expert only where the original SJE’s report is deficient in a way that can’t be addressed through questions or cross-examination.
  • It is a discretionary exercise, and courts will consider factors such as:
    • The importance and centrality of the issue;
    • Proportionality and costs;
    • The ability to challenge the existing report;
    • Whether there would be an "understandable sense of grievance" if permission were refused.

In this case, DJ Parker found the SJE had disregarded the valuations from the property expert—an expert whose input was supposed to form the foundation of the business valuation. That, said the judge, was “concerning” and justified a second expert.

What This Means for Practitioners

  1. Don’t treat SJE reports as untouchable—but tread carefully.

Courts are open to allowing further expert evidence where there's a real risk of injustice, especially if a joint expert has stepped outside their remit or failed to consult appropriately.

  1. Shadow expert opinions are not enough.

You’ll need more than dissatisfaction or a critique. Courts will expect a structured approach: questions first, application second.

  1. Proportionality still matters.

The husband in JMD v SPD was ordered to fund the second expert himself, a reminder that if you ask for more evidence, you may foot the bill.

  1. Coordination between experts is key.

This case shows the risks of siloed reporting—where one expert disregards another’s work. Joint expert coordination can prevent disputes later on.

Conclusion

JMD v SPD reminds us that even a single joint expert can get it wrong—or at least raise enough doubt to justify a second opinion. But courts will protect the discipline of the Daniels framework, requiring a structured, proportionate approach. The lesson for family lawyers? If you want a new expert, you’ll need a better reason than just a bad result.

12 May 2025

Boardrooms and Breakups: What BR v BR Teaches Us About Valuing Complex Businesses in Divorce

How do you divide a £263 million fortune when over £200 million of it is tied up in private companies? In BR v BR [2025] EWFC 88, Mr Justice Peel was faced with exactly that question—offering a masterclass in handling complex business valuations in financial remedy proceedings.

This was no ordinary divorce. Over a 30-year marriage, the husband (H) built a tech empire from scratch while the wife (W) supported him and later challenged the value he ascribed to his business empire. The case turned on one key issue: how much were the businesses worth—and could the wife's team challenge the agreed Single Joint Expert (SJE) valuation?

SJE Valuations: What Are They and Why Do They Matter?

In financial remedy cases, parties often instruct a Single Joint Expert (SJE)—typically an accountant—to value business interests. This approach:

  • Saves time and cost by avoiding duelling experts.
  • Ensures impartiality and transparency.
  • Provides a common evidential base for the court.

In BR v BR, the SJE was instructed early on, producing a detailed (and expensive—over £1 million!) report on C Ltd, D Ltd, and E Ltd. W later attempted to undermine the findings using her own “shadow” expert. The judge was unimpressed, emphasising that:

“Expert evidence is only admissible with the court’s permission under Part 25 FPR. You cannot sneak it in via witness statements or offers.”

This serves as a critical reminder: Don’t rely on backdoor expert opinion. If you want to challenge the SJE, apply under Daniels v Walker and do it early.

Why Valuing Private Companies Is So Difficult

Justice Peel quoted Versteegh v Versteegh [2018] EWCA Civ 1050 to describe business valuations as “among the most fragile valuations which can be obtained.” And for good reason:

  • No obvious market exists for many private companies.
  • Share value depends heavily on who’s buying, and under what conditions.
  • Even small adjustments in projections or multipliers can swing the valuation by tens of millions.

In BR v BR, H argued for a buyout based on the SJE’s valuation. W insisted the businesses were worth significantly more—but her claim lacked evidential support. The court accepted the SJE’s figures, increasing the valuation slightly to reflect a corrected comparable sale.

Clean Break vs. Wells Sharing

W proposed a Wells v Wells sharing structure, where she'd keep shares and cash out later. The court declined:

  • There was a high risk of ongoing conflict between the parties.
  • H’s role in the businesses was irreplaceable—splitting ownership would destabilise the companies.
  • Wells sharing would require costly ongoing oversight, with uncertain value and high legal and commercial risk.

Justice Peel preferred a clean break, ordering H to buy out W’s interests based on the adjusted SJE values. He stressed that a clean break is both desirable and achievable, particularly where the party retaining the business can raise funds.

Key Points for Family Law Practitioners

  1. Use SJE evidence wisely – It remains the gold standard. If you want to challenge it, seek permission early under Daniels v Walker.
  2. Don’t smuggle expert views into witness statements or open offers – They won’t be admitted.
  3. Wells sharing is the exception, not the rule – It should be avoided unless a clean break is clearly impracticable.
  4. Valuation fragility doesn’t mean unreliability – Judges will accept SJE valuations unless there’s a compelling reason not to.
  5. Commercial reality matters – The impact of share dilution, liquidity discounts, and control rights all weigh heavily on the outcome.

Final Thought

BR v BR reminds us that when divorce meets boardroom, family courts are ready—but they demand rigour, realism, and procedural discipline. If you're advising clients with complex business interests, this case should be essential reading.

18 October 2024

Mastering Financial Disputes: Key Lessons from NW v BH on Expert Evidence and Valuations

The case NW v BH [2024] EWFC 118 provides critical insights into the role of expert evidence and the challenges of financial remedy proceedings. The case specifically addresses issues related to Single Joint Experts (SJE), as outlined in the landmark case of Daniels v Walker, and highlights the procedural hurdles and strategic implications for parties involved in complex financial disputes.

Background of the Case

In this financial remedy case, NW (the wife) and BH (the husband) had been engaged in a protracted dispute over various assets, including the family home, business interests, and inheritance claims. A key contention was the valuation of a property, agreed at £1.1 million during a pre-trial review. However, on the eve of the final hearing, the husband sought to introduce a new valuation, lowering the value to £800,000, in an attempt to bolster his financial position.

This last-minute application to vary the valuation, without following the proper protocol for introducing a second expert under the Daniels v Walker principle, put the court in a difficult position. Recorder Rhys Taylor ultimately rejected the application and held the parties to the previously agreed valuation, setting the stage for the court's determination of the financial split between the parties.

Key Legal Issues

  1. Single Joint Expert (SJE) and Procedural Missteps:
    • The husband’s failure to comply with the Daniels v Walker procedure was a central issue. This procedure allows parties to seek permission to appoint a second expert if they disagree with the conclusions of the Single Joint Expert. However, in this case, the husband had agreed to the valuation and failed to follow proper steps to introduce a competing report.
    • The court emphasised that deviations from procedural requirements, especially at the last minute, would not be tolerated unless there were compelling reasons. This decision reinforces the importance of adhering to procedural rules in financial remedy cases.
  2. Valuation of Assets and the Agreed Valuation:
    • The husband’s attempt to introduce a significantly lower valuation was viewed as a tactical move to reduce his financial obligations. The court upheld the £1.1 million valuation, which had been agreed upon by both parties, highlighting the importance of early and binding agreements in financial remedy proceedings.
  3. Non-Disclosure and Misleading Evidence:
    • Throughout the case, the court found that the husband’s disclosure was incomplete and at times misleading. This lack of transparency severely undermined his credibility and contributed to the court’s decision to hold him to the agreed valuation. The court’s handling of this issue underscores the importance of full and frank disclosure in financial remedy cases.

Key Points for Practitioners

  1. Adherence to the Daniels v Walker Protocol:
    • This case serves as a reminder that when challenging the findings of a Single Joint Expert, parties must strictly adhere to the procedural framework set out in Daniels v Walker. Seeking a second opinion without proper justification or following the correct process can weaken a party’s case and lead to procedural disadvantages.
  2. The Importance of Early Agreements:
    • Once a valuation is agreed upon, it becomes binding unless there is a valid legal basis to challenge it. Parties should carefully consider the implications of agreeing to valuations or other key financial metrics during proceedings, as these agreements can significantly shape the final outcome.
  3. Impact of Non-Disclosure:
    • The court’s adverse view of the husband’s lack of transparency is a cautionary tale for parties in financial remedy cases. Non-disclosure or attempts to mislead the court can result in unfavourable judgments, and parties should be mindful that full disclosure is not just a requirement but a strategic advantage.
  4. Judicial Discretion in Complex Financial Disputes:
    • The court’s decision to uphold the agreed valuation despite the husband’s late attempt to introduce new evidence reflects the broad discretion that judges have in managing complex financial cases. Practitioners should be prepared for judicial decisions that favour procedural fairness over last-minute tactical manoeuvres.

Conclusion

The case of NW v BH [2024] EWFC 118 illustrates the complexities of financial remedy disputes and the critical role that Single Joint Expert evidence plays in determining asset valuations. For practitioners, this case is a clear reminder to adhere to established procedures and ensure that all actions taken during proceedings are strategic, timely, and transparent. Failure to do so, as demonstrated in this case, can lead to adverse outcomes and financial disadvantage for clients.

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