Sir Paul McCartney instructed Ernst & Young to value his business assets
as part of his divorce proceedings, it has emerged.
The Big Four firm put a value of £400m on his fortune, a figure accepted by
the court over valuations carried out by ex-wife Heather Mills’ accountants.
E&Y director, Alan Wallis performed the valuation which showed the
Beatle’s business interests as at 11 June 2002 and 28 April 2006 at £242,900,000
and £240,900,000 respectively.
Mills claimed for £125m following her short four-year marriage but a judge
awarded her only £24.3 million from the star’s wealth.
According to court papers, Wallis valued McCartney’s property holdings at
£33,979,000, with £15,159,000 in bank accounts in the UK and USA. His
investments were valued at £34,319,000. He was owed a total of £3,687,000. He
held £6000 in cash. Paintings which he had painted, works of art, musical
instruments, jewellery, furniture, house contents, motor vehicles and horses
were valued professionally at £32,269,000.
He disclosed tax liabilities of £9,615,000. He put in as the value of his
business interests Mr Wallis’ valuation of £240,920,000. His pension assets were
valued at £36,288,000. Accordingly he disclosed total net assets of
£387,012,000. He disclosed his total net income for the next 12 months at
Mills’ forensic accountants Lee and Allen made a preliminary report of the
her former husband’s business interests and also requested further information
so that they could check, comment on, differ from, or agree with Ernst and
But a senior district judge disallowed several of the requests.
In addition, the court rejected the opinion on multiples used in valuations
by Lee and Allen.
Mr Justice Bennett said: ‘Having listened to both accountants giving evidence
I unhesitatingly accept that of Mr Wallis. I am grateful to Mr Allen for his
assistance but on this issue Mr Wallis is in a different league of expertise to
Mr Allen. Mr Wallis told me he has 25 years experience in musical and media
work. In stark contrast Mr Allen, a forensic accountant mainly concerned with
claims for damages and with share valuations, candidly admitted that he had
never valued a catalogue. ‘
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