The short answer
In a separation, the family home and any other property usually need to be valued so the parties can work out a fair division. The most common approach is for both parties to agree on one independent valuer and instruct them jointly. The valuer then inspects the property and prepares a report of current market value. Your lawyer or mediator will guide the process, so talk to them before you order a valuation, as the way it is arranged can matter later.
Why an independent valuation matters
Property is often the biggest asset in a relationship. Small differences in value can make a real difference to the outcome. If each person relies on their own figure, such as an agent's appraisal or an online estimate, it is easy to end up arguing about the number rather than the division.
An independent valuation from a qualified valuer gives both parties a figure based on evidence. It sets out the comparable sales used and how the value was reached, so each side and their advisers can understand it.
For the difference between an appraisal and a valuation, see agent appraisal or certified valuation.
How the valuer is usually engaged
Arrangements vary, and your lawyer is the right person to advise you. In general terms:
A jointly instructed valuer
Often the parties agree on one valuer and share the cost. Both parties, or their lawyers, give the valuer the same instructions. The valuer's duty is to give an independent opinion, not to favour either side. This tends to save cost and reduce disputes.
A valuer for one party
Sometimes one party orders a valuation to get an early sense of value, perhaps before mediation. That can be useful for planning, but the other party may not accept a report they had no say in. Ask your lawyer before you do this.
Court proceedings
If the matter goes to court, there are rules about how expert evidence is given, including valuations. The court may expect a single expert jointly appointed by the parties. Your lawyer will explain what applies to your case.
What happens during the valuation
Instructions
The valuer needs clear written instructions: the property address, the purpose (family law or mediation), the date of valuation, and who the report is for. Your lawyer will often prepare these.
Inspection
For family law, a full inspection is usually the right choice. The valuer needs to see inside to judge size, condition, renovations and any defects. Residential full inspection valuations start from $500 + GST.
Access can be sensitive when one person has moved out. The valuer will work with whoever is living in the property to arrange a suitable time. They will be professional and neutral, and will not discuss the dispute.
The report
The report sets out the property details, the market evidence, the method and the valuer's opinion of market value at the stated date. It should be written so both parties and their advisers can follow the reasoning.
What date is the property valued at?
Family law valuations are usually at current market value, meaning at or close to the date of inspection. Some matters take a long time to resolve, and the market can move in the meantime. If that happens, you may need an updated valuation closer to settlement or a hearing.
If Tom has already done a full inspection of the property, ask about the discounted rate for an update. This can help keep costs down in a long-running matter.
Occasionally, a value at a past date may be relevant, for example around the date of separation. That is a question for your lawyer.
Other property you might need valued
A separation can involve more than the family home. Common examples include:
- investment property, including apartments and holiday homes
- property held in a self-managed super fund
- business premises, shops, factories or warehouses, which need a commercial and industrial valuation
- rural land or lifestyle property
Each property should be valued with the same care, and ideally at a consistent date.
If you disagree with the value
It is natural to have a view about what your home is worth. If you think the valuation has missed something, raise it through your lawyer. Factual errors, such as the wrong land size or a missed renovation, can be looked at. A different view of the market is harder to argue without evidence.
This is one reason a jointly instructed, independent valuer is so useful. Both parties had a say in choosing them and in the instructions.
Choosing a valuer
Look for a valuer who is:
- qualified, such as a Certified Practising Valuer (CPV) with the Australian Property Institute
- independent, with no link to either party or to a real estate agency involved in any sale
- experienced in the type of property being valued
- clear, so the report can be understood by both parties and the court
Tom Nagy is a CPV with current API registration and more than 30 years' experience in real estate and property valuation. His reports are accepted by the courts. Because he works as a sole practitioner, you or your lawyer speak directly with him from enquiry to report.
Talk to Tom
To arrange a family law or mediation valuation, or to ask how the process works, call Tom on 0407 835 388 or send an enquiry. More detail is on the family law valuations page.
This guide is general information, not legal, tax or financial advice.