QLD Single Expert witness property valuation

[Barry123]

Hello ,
My ex has asked for property and equipment valuation by a court appointed single expert witness .

I have some questions _
How much different will the single witness expert value be from actual bank values ?
I am unable to find the criteria they value the house on. My thought is if it is a 'trusted court expert ' there must be a strict criteria to follow for valuations ?

What do they take into consideration for plant and equipment values ? My legal rep says they value equipment items as if you need to sell it " tomorrow" . ?

If the property ( rural 120acres ) is valued by a court expert at a certain amount then it is assumed someone pays the capital gains tax (either if it gets sold tomorrow or gets sold in 10 years there is CGT on property over 2 hectares ) .....so in saying this , the property is in my sole name but SHE wants 35% of the value of 'our" assets .... SO shouldn't the ' assumed ' capital gains tax go in the liabilities column . ?

Some food for thought ,

Any answers appreciated .

barry

 

[Atticus]

How much different will the single witness expert value be from actual bank values ?
I am unable to find the criteria they value the house on. My thought is if it is a 'trusted court expert ' there must be a strict criteria to follow for valuations ?

They would normally appoint a professional property valuer.... The usual process involves researching recent sales in the area & or comparable property sales, together with other determinate factors, land size & type, if the land can be subdivided etc .... More comprehensive than the bank usually.

What do they take into consideration for plant and equipment values ?

Second hand value only in most cases.

it is assumed someone pays the capital gains tax .... SO shouldn't the ' assumed ' capital gains tax go in the liabilities column . ?

The way I understand it, In the absence of any agreement between the two of you, then if the property is sold to a third party, you both would normally contribute equally to CGT (similar to agents fees for selling the place for example).. If one of you was transferred the property, then that person takes on the whole of the CGT when they sell.... Don't believe it should be listed as a liability for those reasons. Your lawyer should be able to confirm.

 

[Barry123]

Thanks Atticus....... not really the answer i was looking for... but thanks

 

[SRL1]

SHE wants 35% of the value of 'our" assets .... SO shouldn't the ' assumed ' capital gains tax go in the liabilities column

This is how it should be IMHO, but courts apparently ignore the deferred CGT liabilities, unless there are plans / arrangements to sell the property in the near future.

So the party who keep the property end up paying the other side a share of the accumulated capital gains, without getting any credit for the other party's share of the CGT liability they are taking on in the process ... not fair, but apparently that's how it is.

 

[Dpj]

This is how it should be IMHO, but courts apparently ignore the deferred CGT liabilities, unless there are plans / arrangements to sell the property in the near future.

So the party who keep the property end up paying the other side a share of the accumulated capital gains, without getting any credit for the other party's share of the CGT liability they are taking on in the process ... not fair, but apparently that's how it is.

I second this. DO NOT ever make out you plan to hold the property medium to long term. Say that you might have to sell. This way a judge will likely take the tax into consideration when dividing the asset pool. If you plan on holding for a long time and make that known CGT discount to the asset is less likely. If you want to keep that asset you allude to a possible sale in the future. If the ex is taking the property then try and get written evidence she plans to hold long term.

I had a property valued by a court appointed valuer. Got 3 bank valuations less than a month early. Court valuation was 15% higher than bank valuation. You want a low valuation so start thinking about what may reduce valuation. Soil contamination, no infrastructure, etc. Valuers aren't dumb but they don't know what they don't know - often they are inherently lazy. If there is no fencing, no electricity, etc, then make that known. There are certain follow-up requirements to an expert witness. I f****d up not going hard at a bad psychologist with post report questions but ensured I asked leading questions to the psychiatrist (what does a diagnosis of XYZ mean for parenting? How can XYZ affect parenting? Etc). Ensure you ask questions that can only be beneficial in court. Ie, 'did you examine the south West corner of the property?' Then get an agricultural expert to say 'the south east corner of the property has 20 acres of unusable land?'. You need to put doubt in the valuation that it's on the high side (if that's what you believe). It may not mean anything in the end but better to have it in your back pocket if you need it.