A separation of a marriage or de-facto relationship can be messy, especially when it comes to determining a just and equitable split of shared assets and/or property. Prior to determining a fair division, both parties to a separation will typically request a joint valuation of assets. A joint valuation will minimise the likelihood that one party receives more than what they are entitled to by determining the fair and current market value of an asset.
Three things to consider when obtaining a valuation for a Family Law Dispute
The right valuer for a family law dispute must demonstrate three characteristics: knowledge, thoroughness and impartiality. Due diligence should be taken to ensure you have the right valuer who is well equipped and able to perform a valuation for a family law dispute. Employing the services of a suitably competent valuer will help streamline the division of assets in both mediation and court. Employing the wrong valuer may result in wasted time, effort and money, especially when the output of the valuer is scrutinised in a legal setting. The wrong valuer may also result in the unfair division of assets or property. So how can we determine if a valuer has the right characteristics for the job?
Secondly, determine the experience of the valuer. An experienced valuer will know how to apply the theoretical knowledge of valuation methodologies in a real-world setting. An experienced valuer should be able to see the small nuances and detail that an untrained or inexperienced person may miss that can have an impact on the value of an asset or property. To help determine the experience of a valuer, ask for his or her resume and whether they have personally performed many valuations for family law disputes.
2. A valuer should examine all aspects of an asset or property that may impact on its value. Prior to a valuer undertaking a valuation of a property or asset, ask if the valuer can provide a template of a valuation report that can be used for family law court purposes. The report should make mention of all the attributes that contribute to the value of the property such as (but not limited to) the size of the block, size of the dwelling, improvements, condition, location, the market conditions and the underlying zoning. The reports also include the necessary searches that need to be completed including title searches, strata plans and deposited plans among others.
3. A valuer for a family law dispute should determine the value of an asset or property on their own without the undue influence of another party. A valuer should assume a natural bias from both involved parties of a family law dispute. His or her expert opinion should be reinforced by objective interpretations, market evidence and data rather than the opinion of an involved party. Evidence of bias or partiality on behalf of the valuers part may result in the valuation being void for a family law dispute. And as joint valuations are scrutinised by both parties and their legal representations, the likelihood that biases will be exposed is significant.
It should be noted that a valuation report provides the expert opinion of what a valuer expects is the current market value of an asset or property. Given that the value prescribed by the valuer is current, it may not be valid after a period of 3-6 months (potentially earlier especially if there are significant market shocks, or later if market conditions remain stable). If legal proceedings for a family law dispute persists for a lengthy duration, multiple valuations may be required that will revise an existing asset or property valuation. Revised valuations should encompass new developments or trends in the market.
Why choose us?
Here at Vanguard Valuations, we take special care to understand your needs and how to achieve them. This includes investigation into a wide range of resources and asking the right questions to ensure we achieve the best results for you
Due to our extensive knowledge and utilization of premium valuer resources essential to accurate property valuation, our reports are produced efficiently, transparency, and with the utmost level of care.
Vanguard Valuations can provide accurate and reliable valuation reports on all manner of properties including houses, units, commercial and industrial, rural, and development sites. We cover a large length of the east coast, including capitals of Canberra and Sydney, as well as all rural areas, Wollongong, Western Suburbs, Sutherland Shire, North Shore and Northern Beaches, Hawkesbury, and the Central Coast.
To enquire about a Pre-sale or Pre-purchase property valuation report for all property types, please call us today on 1300 359 886 or contact us with your property valuation requirements and we will get back to you as soon as possible.
If you are seeking an independent professional company for Family Law valuations, then Vanguard Valuations is the company to engage the services of. Operating around Canberra and Sydney, we also conduct valuations and appraisals across the regions of ACT and the metropolitan area of Sydney through to Campbelltown, Sutherland Shire, Western Suburbs, North Shore, Blue Mountains, Wollongong and the Central Coast. Armed with twenty-five years of industry experience, our team conducts themselves with the utmost professionalism, integrity, transparency and honesty as well as independence. Our qualified Valuers operate closely with the Australian Valuer’s Institute (AVI) and you can be confident in our ability to conduct fair and efficient valuations including Family Law valuations. With highly-personalised client-focused service, Vanguard Valuations is driven to deliver succinct and comprehensible advice and reporting while ensuring strong attention to detail and cutting-edge processes. We deliver reports and our service within a timely manner meeting deadlines and we also can look after urgent requests when necessary. Our team understands the nature of the industry and that sometimes urgent Family Law valuations need to be conducted to help matters be settled quicker therefore we will work with you if you have an urgent request and ensure that you have the results quickly. We are leaders in Family Law valuations as well as for buying and selling, Capital Gains Tax and Stamp Duty Tax.
Family Law valuations can be useful and necessary when it comes to parties not in agreeance over the value of an asset such as a property or properties. This could include the division of assets between parties in the event of a divorce, deceased estates or internal family asset ownership disputes. Family Law valuations are often required fairly urgently due to the nature of disputes so that these matters can be attended to and resolved relatively quickly. Our fully-qualified and experienced Valuers understand the importance of Family Law valuations and how to appraise properties to determine a fair market value. What does this mean exactly? A fair market value is the highest figure that a buyer and a seller would accept for a property in the open market. This principle is core for Family Law valuations and other methodologies including comparable property values can be utilised. Our team is diligent and work with efficacy and accuracy to ensure a quality appraisal is performed and a detailed report delivered. The use of reports from Family Law valuations can be in negotiations and mediation as well as court proceedings during which a Valuer may be called upon to provide of what a property or what properties and assets are worth. We believe in making the process encompassing with all angles that are needed to be considered addressed in making a fair appraisal that is independent and accurate; no sloppy work from Vanguard Valuations.
What happens when business assets are involved in Family Law valuations? It’s a very good question when it comes to family disputes including divorce, deceased estates and internal family disputes. Fair market value is the optimum choice for valuing property and assets including businesses. While fair market value means the figure for which the asset could be deemed of value between a buyer and a seller where both parties act with knowledge and prudence. However, during the course of time with family court proceedings in relation to business assets, the “Value to the Owner” principle has been applied in such circumstances where a fair market value cannot be determined. Such a scenario might be if a person or parties hold a minority share in a company and the fair market value is difficult to determine because there is less likelihood of a willing buyer being interested in this smaller share. “Value to the Owner” is determined by the potential loss sustained by an owner if they were to lose the ownership equated with the value of the asset, however while this can be commonly accepted in Family Law Court, a fair market value is the best practice for the value of assets. All attempts and methodologies should be applied to determine a fair market value for Family Law valuations when business is included in the appraisal of assets.