It is not uncommon for families to have disagreements, even in court. After all, a lot of daytime television has profited from family squabbles in the courtroom. But most want to avoid the drama when it comes to property disputes. To make the process as easy as possible, a property valuation report can be ordered.
What is a property valuation report?
A family law property valuation report is a sworn document that presents the following information to the court:
- The value of the property as it was on a specified date
- Details of the valuer and their qualifications
- The methods used to conduct the valuation
- Identifying information and the data used for valuation
As this document is prepared for court use, it must meet the strict standards of the Federal Circuit and Family Law Court. This includes generating a comprehensive long-form report which is a sworn valuation of no less than 25 pages.
How does a valuation resolve a property dispute?
One of the most important aspects of a piece of real estate is its value. Parties that are disputing over property are ultimately disputing over an asset with potentially major financial benefits.
Valuations are not only sworn documents serving as conclusive proof of market value, but they are also valuable sources of information that can lend to fair and just settlements. This is only possible as valuation reports are completed by reputable experts that are trusted by the court to give objective evidence.
What can complicate a dispute?
Disputes can be quite stressful and complicated, with or without a property valuation report in hand. Here are a few scenarios that may arise during a property dispute and how a valuation report can help aid in the situation.
Disagreeing on value
The parties involved may have their own ideas about the asset’s worth. Often this is no more than sentimental value (which at times cannot be ignored). Here, there is no better solution than to have an objective report of the true market value of the property. As a valuation must be based on conclusive facts and data, there is little room for further debate.
Conflicting valuation reports
There are some cases, where each party has ordered their own valuation report to submit as evidence. If the valuations are drastically different and/or it cannot be decided which report is more accurate, a single expert witness report may be called for. This means one property valuer, that is an objective third party, is engaged to complete a report that the court will use as the definitive representation of the property’s value.
Biased valuers
Parties may attempt to use a valuer that is either a relative or partial in some way towards the outcome of the dispute. When this is the case, their valuation may be biased in order to sway the results of the settlement in their favour.
To prevent this, a property valuer must be independent and free of any bias. The valuer should also be a Certified Practising Valuer which means they are bound to honour the code of ethics and practices of the Australian Property Institute.
Special considerations
There are certain considerations that cannot be ignored when it comes to determining the value of a property. For one of the involved parties, the value of the property may include more than its location and other factors of a standard real estate valuation. Special value may need to be accounted for. A few examples of what might lead to special value include:
- The property is the base of a business, and its location is key to its operation
- The property may have significant sentimental or historical ties to the family
- The property is home to a private family cemetery/crypt.
Each is considered on a case-by-case basis and an experienced valuer, who is able to quantify or recognise this value in their report may help the concerned party to enter this into consideration to the court.
Do you need to pay for a valuation for Family Law Court?
Property valuers are professionals much like your solicitor or even accountant. As such their services will come at a cost. However, considering that a valuation can have a great impact on the results of a property dispute, then it is certainly worth its price.
How much you pay a valuer is determined by several factors including:
- If they are hired by more than one party
- The size of the property/its estimated value
- The type of property being valued
- Whether the report is for court, mediation or short-form expedited hearing
The best way to discover how much a property valuation for family law will cost in your situation is to request a quote from a qualified valuer.
Summary
Property valuations provide evidence of the disputed property’s market value. The report, when created by an independent and reputable valuer, is comprehensive and can include crucial information that can ensure a fair and just outcome to a Family Law Court property dispute.
Complications can be avoided, meaning proceedings can be swift and thus ultimately can save all parties time, money and added stress.
Added considerations may also be accounted for, preventing devastating losses and ultimately a fairer outcome.
For more information, that is more specific to your case, get in touch with a reputable valuation firm to enquire about a valuation for a property dispute.
