Property Valuation and Property Settlement

When couples separate they want to separate all their property and move on. There are a number of steps before parties can finalise their Property Settlement.

First, the Family Courts in Australia have to consider whether it is just and equitable to make orders for a property settlement at all. The Courts take a number of matters into account but this really means, is it fair to divide the property.

Among the issues the Court must consider is whether there is any significant property and if so, whether the parties agree about its value, or the value is in dispute.

If the Courts determine that it is just and equitable then the next step is to identify and value the property.

What Happens if No One Agrees on the Value?

In preparing for settling matters, the parties may agree on the value of many of the items of property. In addition, parties or their legal representatives may be able to negotiate any differences either in correspondence or at a mediation.

There may however remain significant property which the parties cannot agree on. The former matrimonial home is often an area of dispute.

Additionally, if one party has a company, the other party may want an official valuation to ensure that this is included in the property settlement.

What is a Valuation?

If the parties cannot agree about values, the Court may make Orders for an expert valuation. The parties may agree on the valuer or one party may provide a list of 3 valuers and the other party choose from the list. This would then be called a joint valuation.

The expert must be appropriately qualified to value the particular type of property and attach their curriculum vitae (CV) showing their qualifications and credentials to their valuation report.

As valuations can be expensive, it is important the report is current as orders finalising the property settlement will be based on the value at the time of the Hearing or when the orders are made.

What if you don’t agree?

The Court can allow one party to provide the evidence of another expert if there is a substantial evidence of a contrary opinion or if there are other matters that the expert may not have been aware of when preparing the report for the court.

There must be a significant basis for granting permission to allow a second report as parties can’t be seen to be seeking a more favourable report for their case.

Next Steps

Agreeing on values is an important step in finalising a property settlement. The Court will then need to consider the contribution of each party to the financial resources and property and whether there should be an adjustment.

It is therefore important that all values of significant property should be current and agreed.

The Courts will then determine that the final property settlement is just and equitable in all the circumstances of the parties.

If you have any questions or wish to discuss your own property arrangements please contact us at your earliest convenience.

The above is provided for information only and is not legal advice.