Updated 27 October 2026
CM Law’s Ultimate 50 Things You Need to Know About Property Settlement During Divorce #39. What happens if there are discrepancies in asset valuation?
CM Lawyers property settlement guide
Resolving different asset values after separation
When separating couples disagree about a home, business or investment, the answer is to examine the evidence behind the figures. A suitably qualified independent valuer can help establish a reliable value for negotiations or court proceedings. Simply choosing the highest figure, the lowest figure or their average can leave important assumptions unexplained.
In NSW, family law property disputes are ordinarily dealt with in the Federal Circuit and Family Court of Australia under the Family Law Act 1975. The property framework applying from 10 June 2025 considers property and liabilities, contributions, and current and future circumstances, including relevant economic effects of family violence. Orders must be just and equitable. Valuers assess value; they do not decide each person’s entitlement.
Identify what is actually disputed
Start with a joint schedule of assets and debts. The Court’s balance sheet guidance recommends current figures supported by records, with each party’s proposed values shown alongside one another. Mark an unknown value clearly rather than guessing. An agreed bank balance may need no expert report, while a disputed business interest may require substantial investigation.
Check whether the figures concern the same asset, ownership interest, date and purpose. One report might value a whole property while another concerns a fractional interest. A house value and the equity remaining after its mortgage are different figures. For household contents, realistic resale values generally matter more than original purchase prices.
Choose a valuer with the right expertise
For real estate, consider an independent Certified Practising Valuer with experience in the relevant property type and location. Check qualifications, conflicts, availability and experience preparing family law expert reports. A suburban home, development site and commercial building may require different specialist knowledge.
For business interests, ask about an experienced business valuer or forensic accountant with valuation expertise. CA ANZ recognises business valuation specialists, although a particular professional designation is not a universal legal requirement. The expert’s actual knowledge must fit the disputed issue.
An agent’s appraisal can assist preliminary discussions, but should not be treated as interchangeable with a detailed expert report prepared for litigation. Likewise, an online estimate may not reflect an inspection, unusual features or the legal interest being valued.
Understand how a property valuation is prepared
The Australian Property Institute explains the valuation process: the valuer investigates the property, inspects it, examines relevant transactions and explains an opinion of value at a specified date. Provide access and relevant records, including leases, plans, known defects and information about improvements.
Comparable sales help test what buyers have paid for similar properties. Adjustments may be needed for condition, size, location or timing. Income and cost approaches may also be relevant. The API’s guidance on valuation methods emphasises explaining differences between results rather than merely averaging them.
Ask whether an earlier report needs updating before mediation or trial. Market movements, repairs, new leases or a changed development proposal may affect its usefulness. Historical valuations may also be needed for a particular issue; your lawyer should settle the instructions.
Use a single expert where appropriate
Under Chapter 7 of the Family Law Rules, parties can jointly appoint a single expert, or the Court can order an appointment. The expert owes an overriding duty to the Court and must remain impartial, whoever pays.
A joint appointment gives both parties a common report to consider and can reduce duplicated work. The Court’s case management guidance supports obtaining expert evidence where it will help resolve the real issues. Appointment does not guarantee agreement or make the report conclusive.
Have the lawyers prepare clear written instructions identifying the asset, ownership interest, valuation date, purpose, questions and documents. Flag disputed facts rather than presenting one person’s account as agreed. Communications with a single expert must ordinarily be shared with the other parties simultaneously.
Supply complete financial information
The duty of financial disclosure begins before proceedings and continues while the dispute is being resolved. A valuation based on incomplete records can create avoidable disagreement and expense. Tell your lawyer promptly if important documents are missing or controlled by the other person.
For a business, organise financial statements, tax returns, current management accounts, debt information, leases and significant contracts. Ask the valuer to identify the interest being valued and explain how earnings, assets, liabilities and goodwill affect the assessment. Government business valuation guidance recognises that different methods suit different businesses. A turnover figure alone does not explain what an ownership interest is worth.
Keep the asset schedule consistent with the report. Ask whether a business valuation already includes particular equipment or property before adding those assets separately. Obtain tax advice about proposed transactions rather than assuming every possible tax cost should automatically reduce the valuation.
Treat superannuation as a separate valuation task
Attorney-General’s Department guidance explains that the valuation method depends on the type of superannuation interest. A recent balance generally provides the value of an ordinary accumulation interest. Defined benefit interests and self-managed funds can require specialist work. Obtain trustee information and advice about the applicable valuation and splitting requirements. A superannuation entitlement should not be treated as immediately available cash.
Question the report through the proper process
Read the reasoning as well as the final number. Identify specific concerns: an omitted lease, an incorrect floor area, outdated accounts, unsuitable comparable sales or an unexplained adjustment. Ask what evidence supports the assumption and whether correcting it would change the conclusion.
Rule 7.26 permits written clarification questions, generally once only: within 21 days of receiving the report if there is no conference, or seven days after a conference. Questions must be copied to the other parties. Check applicable orders and deadlines with your lawyer promptly.
Another expert’s evidence on the same issue requires permission under rule 7.08 where a single expert has been appointed. Disagreement alone does not establish entitlement to rely on another expert’s evidence. Your lawyer can advise about clarification, cross-examination and whether an application for further expert evidence is justified.
A real case about competing valuations
In Neales & Neales [2022] FedCFamC1A 41, the dispute concerned commercial properties held through entities in which the husband had a minority shareholding. The single expert’s and another valuer’s assessments differed by about $11 million. The husband initially failed to obtain permission to rely on the other expert.
The Full Court allowed his appeal and permitted that evidence. It considered the combined significance of different methodologies, different information and the consequences for the husband, who would retain the interests while the wife sought cash. The valuation gap alone was insufficient.
The case considered the earlier Rules. Its practical lesson is to identify why the evidence differs and follow the applicable procedure. The appeal did not determine the final property values or award a settlement based on an average.
Manage costs and turn the valuation into a settlement
Get a written quote covering inspection, reporting, updates, questions and court attendance. Single expert report fees are shared equally unless agreed or ordered otherwise; reasonable fees for answering written clarification questions are generally paid by the party asking them. Discuss payment arrangements early if cash is limited.
Compare the likely effect of a disputed value on the overall settlement with the cost of further investigation. The Court encourages genuine attempts to resolve disputes, subject to applicable exemptions and safety considerations. A reliable valuation can support mediation, but the parties must also address debts, refinancing, transfer arrangements and how any agreement will become legally binding.
Speak with Christine about a valuation dispute
Christine Manolakos and our property settlement team can help identify which assets need expert assessment, coordinate instructions and consider how a report affects settlement options. Our property settlement mediation services can assist where negotiated resolution is appropriate.
Contact CM Lawyers with the reports, asset schedule and supporting records. This guide should always be checked by a lawyer against your circumstances before you appoint an expert, challenge a report or sign a settlement.
General information only. Obtain legal advice tailored to your circumstances, with specialist valuation and tax advice where required.
Key resources
FCFCOA balance sheet guidance and financial disclosure guidance — Current values, supporting records and disclosure obligations.
Family Law Rules 2021 — Chapter 7, particularly rules 7.03–7.08, 7.13, 7.18 and 7.24–7.28.
FCFCOA Central Practice Direction and pre-action procedures — Expert evidence, proportionality and dispute resolution.
API Certified Practising Valuers, valuation process and valuation methods — Qualifications, inspections and explained assessments.
CA ANZ business valuation specialisation and government business valuation guidance — Choosing expertise and understanding methods.
Attorney-General’s property reform fact sheet and superannuation splitting guidance — Current property framework and specialist valuation requirements.
Neales & Neales [2022] FedCFamC1A 41 — Orders and reasons, particularly paragraphs 31, 40–42 and 63. Read the reproduced judgment.
