Divorce and separation are devastating and often unpredictable for couples who once believed they would last forever. Couples tend to have shared property and/or assets and the end of the relationship calls for a fair division of what they own.
This is where property valuations for divorce or separation come in. The only way to guarantee a fair division is to have a definitive and clear understanding of the existing market value of the property and assets.
Property valuation is an important tool for anyone looking to find the current market value of a property or asset. With a valuation report, parties don’t need to waste time arguing over market value and can instead look forward.
As such, these reports are massively beneficial for anyone in the middle of a divorce process and can save both parties time and money.
What is a property valuation for divorce or separation?
A property valuation for divorce or separation is a professional service used to determine the market value of the subject property or asset. It comes in the form of a report prepared by an accredited and experienced valuation expert.
The valuation report is accepted as official proof of market value in the eyes of the law. During a divorce process, the report can be used to determine what a fair division of the property and assets would be.
The independent and unbiased nature of the report means that parties need not worry about outside influence. Both can rest assured knowing that these reports hold a high degree of accuracy.
Valuations often lead to much quicker divorce and separation processes as parties can instead focus on the finer details instead of debating an asset’s market value. With valuations, an equitable division of assets, as well as buyout options, can be highlighted.
The types of properties and assets often subject to divorce valuation processes include:
- Marital homes
- Investment properties
- Business assets
- Family vehicles
- Household assets
How is a valuer chosen and who pays for it?
The service of a property valuer for divorce or separation proceedings may be required or requested by your solicitor, judge, bank, and/or accountant. It is important to request the right service for the report you need.
A property may be chosen or assigned by:
- The Court, which is common for cases requiring a single expert witness.
- Both parties having agreed to and jointly hired an independent property valuer.
- Having one of the partners nominate valuers for the other party to select.
Once a valuer has been decided on, payment for their services is normally split between both parties 50/50. Other arrangements may be agreed upon before engaging with a valuer, with or without the assistance of lawyers.
No matter the valuer firm, you will need to pay for their service in full before you receive a report. As such, it is important to have this completed as soon as possible to avoid any unnecessary delays in your divorce or separation proceedings.
What is involved in the valuation process?
One of the first steps in completing a property valuation, especially one that is being used for Court, is the physical inspection. This can take anywhere from 15-30 minutes for a standard home to hours for larger estates.
After an inspection has been completed, valuers further investigate the property, the local housing market, comparable properties, and the many different factors that influence the market value of the subject property.
How long a report will take to complete will vary according to the property and the type of report to be completed. Short-form reports which are used for mediation are completed at a faster rate than long-form reports due to their slightly more concise nature. When inquiring about a valuation, your chosen valuer can provide a more precise timeline for your report.
If you are still on the lookout for a property valuer to help you through your divorce/separation property settlement, get in touch with a local firm today.
