LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

VIC Property Value re Divorce Settlement

Discussion in 'Family Law Forum' started by Rosella, 11 May 2015.

  1. Rosella

    Rosella Member

    Joined:
    8 April 2015
    Messages:
    4
    Likes Received:
    0
    Is there a law in regards to the value of a property in a divorce settlement ( consent orders), how it gets valued, at what date would you value the property? Ie. Can the property be valued as of the 'date of separation' or is it valued as of the time of the lodgement of consent orders (hence, if it takes a few years to lodge consent orders, the value of the property would generally have increased in that time - this would be unfair to one party, if the other party has been delaying proceedings, perhaps in order to allow the value of the property to increase, which would be to their advantage in regards to the amount they would be paid out?).

    At what date is it acceptable to value the property - date of separation, or time of lodgement of consent orders?
     
  2. AllForHer

    AllForHer Well-Known Member

    Joined:
    23 July 2014
    Messages:
    2,319
    Likes Received:
    423
    Well, if the orders are made by consent, then a property settlement can be whatever you both agree to, including when the valuation was done.

    If it were arbitrated by the court, however, I believe the value of the joint asset pool would be taken from the day of settlement, rather than the day of separation. So, if you divorce three years after separation and then settle six months after divorce is finalised, the value of the joint asset pool will be taken from three years and six months after separation.
     
  3. Rosella

    Rosella Member

    Joined:
    8 April 2015
    Messages:
    4
    Likes Received:
    0

    Thank you for your reply. So, basically this means that one party (ie. the party being paid out) can deliberately delay settlement proceedings, to increase the value of the settlement amount they shall receive (ie. as property generally increases in value each year)? How is this fair?
     
  4. AllForHer

    AllForHer Well-Known Member

    Joined:
    23 July 2014
    Messages:
    2,319
    Likes Received:
    423
    Yes, they can, but that means you don't have to agree to it. You can instead negotiate property settlement based on a more recent valuation. The higher the property value goes, as well, the more you'll be entitled to, too. If it goes to arbitration, it'll be on the most recent property valuation, as well, so delaying proceedings might result in a higher property settlement by arbitration, anyway.
     
  5. Rosella

    Rosella Member

    Joined:
    8 April 2015
    Messages:
    4
    Likes Received:
    0
    Thanks. So, just to clarify, as I am the person who is going to have to borrow money to pay my ex-partner out, I shall be penalised and shall have to pay out a bigger sum, due to property values increasing whilst they delay settlement proceedings? I just cant see how this is fair? I know I dont have to agree to anything as such, and it may go to arbitration, but I just dont understand how, if I have been trying to complete the settlement for 2 years, and my ex-partner continues to delay, I should be the one being penalised.... Just seems very unjust?
     
  6. AllForHer

    AllForHer Well-Known Member

    Joined:
    23 July 2014
    Messages:
    2,319
    Likes Received:
    423
    If your former spouse has been delaying without good cause, you can also apply for a costs order that helps cover your legal fees. In terms of the actual property settlement, nearly everything should be ordered in exact sums, so you pay out the amount ordered, and if that doesn't suit, then request a more recent valuation and adjust accordingly.

    As I said, consent orders are only as fair as the parties decide. If you decide it's not fair, you don't have to sign consent orders and you can instead let the court decide for you.

    I'm not sure I can be any more help than that. Whether it's fair or not is for you and your former spouse to decide, and failing that, it's for the court to decide, but I'm not in any position to provide insight about that aspect of things. All I can provide is the objective legal information that might help you make sense of how it all works. Apologies if this isn't what you had hoped to hear. :(
     

Share This Page

Loading...