Property valuations for family law and settlements

Why the court wants one valuer, not two

The first step in any property settlement is identifying the asset pool — everything held in sole names, joint names, companies, trusts and superannuation. Once identified, every asset needs a value against it. Where the parties agree, that value can simply be agreed. Where they don't, the family law system requires an independent expert to supply it.

The Federal Circuit and Family Court's rules expect that evidence about the value of property is given by a single expert witness. The expert is normally chosen jointly by both parties; if there's no agreement, the court can appoint one by order. Instructions must come in writing from both sides, and the valuer can't take instructions from one party alone.

The reason is practical. Two opposing valuations invite argument about the valuers rather than the property, and the cost of that argument comes out of the pool being divided. One report that both sides are bound by is faster and cheaper.

What the report has to comply with

A family law valuation isn't a market appraisal with a different cover page. It's expert evidence, and it has to be prepared accordingly — in line with the Family Law Rules and the Expert Witness Code of Conduct. The valuer's duty is to assist the court impartially, not to advocate for the party who engaged them.

• A signed, dated opinion of market value at a stated date
• The comparable sales evidence relied on, and why it was chosen
• The methodology and reasoning, set out so it can be tested
• A statement of the expert's duty to the court and their independence

If you're settling without going to court

Most separations never reach a hearing, and a valuation is just as useful when they don't. Consent orders and binding financial agreements both require accurate values for every asset, and a figure produced by someone with no interest in the outcome is far harder for either side to dismiss in mediation.

Getting the valuation early tends to shorten everything that follows. Arguing over a number neither party can substantiate is where settlements stall.

Timing, and what happens when the market moves

A valuation speaks as at its date. As a general guide, a residential valuation is treated as current for around 90 days, and settlements routinely take longer than that. Where a matter runs for a year or more, or the market shifts materially, either party can seek an updated valuation.

There's no automatic rule that a rise or fall between separation and settlement belongs to one party — the court considers contributions made after separation, among other things. Practically, it's worth recording the source and date of every value used in the consent orders, so the basis of the agreement is clear later.

What we need to start

The property address, written instructions from both parties or their solicitors, and access arrangements. If there's a tenant, we'll coordinate the inspection with them directly. Documents that help: the rates notice, plan of subdivision, details and costs of any renovations, and any lease in place.