valuation of Assets - current or historic

[Cambiaso]

Hi, I’m in the process of a financial resolution. I divorced in August 2018 and separated in June 2014 some 5 years ago. We have been asked in an FDA to confirm values of horses that were jointly owned. I have established that out of 9 horses only 2 are still in my ownership, the others have been retired and re homed and the rest have sadly died. My ex is requesting that the valuation be based on the horses value in 2014 and a value to be established for those that are dead or no longer in my care. I understood than any marital property/asset must be valued on its current value as it stands today not historically. Also if dead or no longer my property then they would not be considered as marital assets in a financial resolution. I am waiting for the court to confirm the order but would be helpful to know sooner than later if anyone has advice on this matter.

[Peridot]

Hi Cambiaso,

The Form E provides a snapshot of your current financial circumstances so should include a raft of 'current' information and supporting documents for the situation as it stands not from 4 years ago. This is the sort of info that is needed:-

• For all of the property you own, either jointly or in your own name, you need up to date mortgage statements and ideally something to evidence its approximate value (such as estate agent’s appraisal);
• For all of your bank accounts you must provide the last 12 months statements (this can often feel like an invasion of privacy as the lawyers and your spouse or civil partner can then look at what you have been buying, but it is a necessary part of the process);
• Proof of the current value of any investments (shares, ISAs, unit trusts etc);
• Details of life insurance policies and their surrender values –you usually need to request these specifically from the insurance companies;
• Details of personal belongings worth over £500 (eg cars, paintings, antiques);
• Debts, such as credit cards;
• Actual or potential capital gains tax liabilities, which is something you might need an accountant to clarify for you;
• Business assets – if you are a company director or in partnership, or run a business, then you need to provide company accounts and various other documents;
• Pension valuations – either a recent yearly statement or by request from your pension provider; and
• Details of your earned or self-employed income, with payslips and/or tax returns in support, along with any unearned income and state benefits.

You also need to disclose any interests under a trust or imminent inheritances. It is then for the other party to raise questions if they believe there are items missing or undeclared and further if there is any clarification required of any figures disclosed.

I hope that helps but pop back if you need any further pointers.

[Cambiaso]

Hi Cambiaso,

The Form E provides a snapshot of your current financial circumstances so should include a raft of 'current' information and supporting documents for the situation as it stands not from 4 years ago. This is the sort of info that is needed:-

• For all of the property you own, either jointly or in your own name, you need up to date mortgage statements and ideally something to evidence its approximate value (such as estate agent’s appraisal);
• For all of your bank accounts you must provide the last 12 months statements (this can often feel like an invasion of privacy as the lawyers and your spouse or civil partner can then look at what you have been buying, but it is a necessary part of the process);
• Proof of the current value of any investments (shares, ISAs, unit trusts etc);
• Details of life insurance policies and their surrender values –you usually need to request these specifically from the insurance companies;
• Details of personal belongings worth over £500 (eg cars, paintings, antiques);
• Debts, such as credit cards;
• Actual or potential capital gains tax liabilities, which is something you might need an accountant to clarify for you;
• Business assets – if you are a company director or in partnership, or run a business, then you need to provide company accounts and various other documents;
• Pension valuations – either a recent yearly statement or by request from your pension provider; and
• Details of your earned or self-employed income, with payslips and/or tax returns in support, along with any unearned income and state benefits.

You also need to disclose any interests under a trust or imminent inheritances. It is then for the other party to raise questions if they believe there are items missing or undeclared and further if there is any clarification required of any figures disclosed.

I hope that helps but pop back if you need any further pointers.

Thanks for your reply, so to clarify claims for marital assets no longer in my possession, for instance horses that have died cannot be considered in a financial resolution? My ex is implying I should have to pay her what that horse/s were worth in 2014.
Also I have been asked by the judge to provide a list of invoices received relating to farrier work over the past 12 months, my ex has approached my farrier directly and asked him to provide her with the invoices. Is this legal or does it break data protection laws. Can her actions be used against her in the next hearing (FDR)?

[Peridot]

Hi again,

The form E is a snapshot of the assets at the date it is completed. So if you no longer own the horse then it wouldn't be included. However if the Court is minded to order further information is provided you have to do so. In this scenario I presume that the farrier bills would indicate how many horses are being shod and therefore could give an indication of how many you own? The order is for you to obtain the information? The farrier shouldn't provide the info to your ex if she approached them but the info is required so rather than getting into an argument about it maybe just confirm with the farrier the info is needed but to provide it to you rather than her. I can't see that data protection would come into this if they provide you with the information (as per the order) but the farrier may have an issue if they do give the info to your ex. This is separate from the financial claim however and just between you and the farrier.

[Cambiaso]

Hi, thanks again for your answer. I have received the order from court regarding the valuation and it says ‘provide a valuation of the horses owned by the respondent’ does this mean that I do have to try and value horses that I have owned historically or only those I currently own. I do not think it has been written clearly. Can you advise?

[paulajayne]

Currently owned (as per Form E current at date of completion/signed.)

[Cambiaso]

So if said ponies have been used in sport to generate income which has directly paid for their up keep. Does this make any difference to the position of the value of assets today in a financial resolution?

Also as separation was in 2014 but decree nici in 2016 and absolute in 2018 with the financial resolution in 2018 going into 2019 does this make any difference to the position of both parties (assets, financial position)? I.e as decree absolute was 4 years after time of separation.

[paulajayne]

Their value is at the date of completion of assessment, previous earnings not included.

I think a visit to an accountant may be advised,