Often, in matters of dispute including in particular Family Law proceedings, the value to be determined is the “value to owner” of the relevant asset.

In many, if not most, cases the value to the owner is the same as market value.  There will be a difference if there exists “special benefits” available to the owner which cannot be transmitted to a prospective purchaser.

In general, the ability to exploit inalienable personal goodwill in the context of a business does not constitute a “special benefit” to be included in assessing value to the owner.  The fact that there is found to exist personal goodwill does not necessarily mean that goodwill is inalienable, or that there is no separate (alienable) commercial goodwill.

Basically, when applying a ”value to owner” standard, you will ask the question:

“What would the owner of this business pay to not be deprived of the asset”

Another definition of value to owner is:

“what a reasonable, prudent business person, in the position of the holder, willing but not anxious to exchange the asset for cash, and reasonably informed of the relevant facts, would see as the cash equivalent of the relevant asset to him/her.”

The definition is an objective standard which removes any reference to a “hypothetical” or emotional buyer.  The “relevant facts” will include an appreciation of market factors including those relevant to the assessment of risks.

“Value to owner” is effectively a standard of value to be applied and which has its greatest application in relationship property matters.