While the annual rate of divorces being granted by the Family Court across Australia has been holding steady at around forty-nine thousand since 2018 (ABS 2022), the rate of complexity surrounding valuing properties for divorce or separation proceedings has certainly increased over the years.
Traditionally, valuers would have been solely instructed to provide a valuation on a marital home. However more recently, our valuers are seeing an increasing trend where the marital home is a portion of a much larger, more complex property portfolio.
Complex Property Portfolios
One prevalent misconception is the belief that property valuations are only required on real estate assets. Family law valuations encompass a broad spectrum of assets, including the family’s residential property, commercial property, investment property, plant and equipment, and businesses too. This combination of assets can make valuing a client's property and asset portfolio quite complex.
Investment Properties
Investment properties such as rental properties or real estate held for income generation play a crucial role in family law valuations.
Where there are multiple investment properties involved, and in various locations across the country, having a network of valuers at your disposal with local market knowledge becomes an invaluable resource, especially if court proceedings are time sensitive.
Commercial Properties
Commercial family law instructions have steadily increased over the past years and are often required in conjunction with a residential property valuation and business valuation for settlement purposes.
Beyond merely assessing market value, commercial property valuation requires expertise in assessing the income-generating potential of commercial properties. This involves analysis of rental incomes, lease agreements, and overall financial performance.
Furthermore, geographical nuances of commercial properties need to be assessed with location-based factors such as accessibility, surrounding infrastructure, and regional economic trends, all playing a pivotal role in determining the property's worth in the context of family law proceedings.
The diverse expertise of the Acumentis team extends beyond traditional commercial properties to encompass going concern assets. This specialisation proves invaluable when dealing with businesses and enterprises that are integral parts of the family's financial portfolio.
Business Valuations
If one or both parties involved own a business, its value must be assessed as part of the overall settlement, which can be a complex process.
This type of valuation will determine the potential market value for a company, analysing various factors including account statements, industry trends, economic conditions, market dynamics, and the value of tangible assets like buildings and equipment, along with the replacement cost of equipment.
An expert business valuer has a different skill set compared to a property valuer, so if your client has a business or two within their portfolio, partnering with one valuation firm that offers both business and property valuation services is an advantageous move.
Decision Certainty
The misconception that property valuations are only limited to real estate overlooks the diverse nature of assets involved in complex family law cases. Achieving a fair and just property settlement requires a comprehensive approach, made as easy as possible for those parties involved. By engaging an Acumentis property and business valuer, who specialises in family law valuations, you’re engaging with a nation-wide network of property professionals across all property assets types – residential, commercial and agribusiness.
Your Acumentis team specialises in providing property and business valuations for inclusion as evidence within the Family Law Court, as well as expertise in the provision of family law advice and expert witness testimony. We have supported thousands of Australians through their separations by providing property and business valuation information and insights that have enabled them to achieve successful outcomes.