Inaccurate Valuations - Family Law Property Settlements

A significant problem in property settlements can often be a separated couple having very different ideas of the value of their assets. Very inaccurate estimates of value can lead to court orders being set aside (i.e. cancelled and having to start over again).

Getting an agreed value on your assets will often make a big difference in helping to get a property settlement negotiated and settled. There is no point making totally unrealistic arguments about the value of assets if it is only going to stop you from reaching an agreement and wasting time and money on lawyers arguing about it.

Do we need to obtain proof of value?

There is no requirement to obtain proof of value of assets in the event that you are able to agree on value. If you do not agree, it is not good enough to say that your opinion on the value of the assets is right and the other person’s opinion on value is wrong, you need evidence to back up your opinion.

How will our assets be valued?

Separated couples rarely get formal valuations of all of their assets completed by registered valuers or accountants. Often there are formal valuations of houses/land, plant and equipment of businesses and the value of businesses themselves. However, separated couples regularly rely on some of the following sources of information to help try and reach agreement on the value of things:-

• Red book searches or car sales guide about the value of motor vehicles;
• Comparative advertised sale prices in places such as ebay, facebook marketplace for the value of individual items such as shipping containers, buggy’s, tinny’s etc; and
• Real estate agent appraisals.

When do assets need to be sold?

If neither person wants to keep an asset or cannot afford to keep an asset then it will need to be sold. The value of the asset is usually whatever the sale price is. With items such as household furniture, appliances etc it is important to note that valuations are based off what these items would sell for, not what you paid for them originally, and this can be drastically different.  

Very inaccurate valuations can prevent a couple from being able to settle or can result in agreements being set aside by the court. Accordingly, it is always a good idea to do your homework and be realistic in your assessment of values, or if you are at all unsure, getting an expert valuer or accountant to help.

If you are contemplating or going through a current property settlement, we would recommend you seek legal advice. We encourage you to contact our office to make an appointment with one of our solicitors to obtain advice on your situation on (07) 4963 2000 or through our online contact form below.