## Stop. Put down the pen. You're a freelance graphic designer. Or a marketing consultant. Or a self-employed electrician. You've just reached Section 2.11 of Form E—"Business Interests and Directorships." The form is asking for the "value" of your business. You turned over £80,000 last year. So you wrote: *"Business Value: £80,000."* **You've just made a catastrophic error.** You haven't told the court you run a successful business. You've told them you have **£80,000 of assets** sitting there, ready to be split down the middle in your divorce settlement. And now your ex's solicitor is licking their lips. --- ## The Myth: Turnover Is Not Value Let's clear this up once and for all, because this mistake costs self-employed people **tens of thousands of pounds** in divorce settlements every single year. **Turnover** is the total amount of money that flows through your business in a year. It's your sales. Your invoices. Your gross income before you pay for anything. **Business Value** is what someone would pay to buy your business from you if you wanted to sell it tomorrow. For most freelancers, consultants, contractors, and sole traders, those two numbers are **wildly different**. In fact, for most service-based businesses, the "value" is closer to **£0** than it is to your turnover. Here's why: If you're a freelance copywriter earning £60,000 a year, what happens when you sell the business? The clients were hiring *you*—your skills, your reputation, your relationships. Without you, there is no business. There are no contracts to transfer. No patents. No intellectual property. No staff. No recurring revenue. A buyer gets... nothing. Your business dies the moment you leave it. **That means the business has no goodwill value.** The *only* real assets in your business are: * **Cash in the business bank account** (minus tax owed to HMRC) * **Physical equipment** you own (laptop, tools, van—but only at second-hand resale value) * **Money owed to you** (outstanding invoices not yet paid) * Minus **money you owe** (suppliers, credit cards, loans) This is called your **Net Asset Value**. For most sole traders, it's somewhere between £2,000 and £15,000—not £80,000. But if you write "£80,000" on Form E because you confused turnover with value? The Family Court will take you at your word. --- ## The Consequence: You Lose Real Money Let's walk through what happens next. You've listed your business as worth £80,000. Your ex's solicitor sees this and thinks: *"Brilliant. That's £80k of assets on their side of the ledger."* Now it's time to divide the matrimonial pot. Let's say you jointly own a house with £200,000 of equity. A fair 50/50 split would normally give you both £100,000 each. But your ex's solicitor argues: > "My client should receive £140,000 of the house equity, because your client is keeping a business worth £80,000. That balances the pot at £140k each." You protest: *"But the business isn't worth £80k! I can't sell it! It's just me doing work!"* Too late. You already declared it. The court assumes you were honest. You either accept the deal, or you pay £3,000+ for a forensic accountant to prove your business is actually worthless—*after* you've already damaged your credibility. You've just lost **£40,000 of house equity** in exchange for a "business asset" that doesn't exist. All because you wrote your turnover instead of your net asset value. --- ## Why This Mistake Is So Common Here's the thing: **it's not your fault you didn't know this.** Section 2.11 of Form E doesn't explain the difference between turnover and value. It just asks for "the value of your interest in the business." Most people assume that means "how much money the business makes." If you've never sold a business before, why would you know any different? Accountants know. Business valuers know. Family law solicitors know. But *you* shouldn't need to hire three professionals just to fill in one box correctly. --- ## The Solution: Divvio's Valuation Reality Check This is exactly the kind of invisible trap that Divvio was built to prevent. When you reach **Step 19 (Business Interests)** in Divvio, the software doesn't just give you an empty box and wish you luck. The moment you start typing, Divvio's **Valuation Reality Check** pops up with a clear warning: > ⚠️ **Don't enter your turnover or annual income here.** > The court wants to know what someone would pay to *buy* your business—not how much you earn. > For most freelancers and sole traders, this figure is your **Net Assets** (cash in bank + equipment – debts). > Need help? See our guide. You also get: * A step-by-step guide to finding your Net Asset Value from your business accounts * Examples of what *does* count as business value (stock, goodwill if you have contracts, equipment) * A prompt to attach your latest business accounts as evidence * A reminder to deduct your estimated tax liability Instead of guessing—and accidentally inflating your assets by £80,000—you get the **real** figure. The one that's defensible in court. The one that protects your share of the house. **[Start your free Divvio trial](https://www.divvio.co.uk) and see how Step 19 helps you avoid the turnover trap.** You've worked hard to build your business. Don't let a single line on Form E cost you tens of thousands in your settlement. [**Protect Your Assets – Try Divvio Free →**](https://www.divvio.co.uk) --- *Divvio is not a law firm and does not provide legal advice. If your business has significant goodwill, intellectual property, or employed staff, you may need a formal business valuation from a chartered accountant. For complex cases, consult a family law solicitor.*