ACT Valuation of PPR 8 months after separation

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maintaining_compassion

Active Member
16 December 2019
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0
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I have separated from my defacto over 10+ years and on the Balance Sheet provided by her solicitor six months ago, she nominated a value for our PPR (which I owned prior and is in my name). I accepted that value that she provided on the Balance Sheet.
Now six months after the Balance Sheet was accepted, her solicitor is asking for a formal independent valuation, more than eight months after we separated.
Is this legal, given:
  1. I accepted her valuation on the Balance Sheet.
  2. That significant time has passed with house prices going up.
  3. She has not made any contributions to the mortgage since leaving.
  4. I have made further changes to the property since she left.
Thanks.
 

GlassHalfFull

Well-Known Member
28 August 2018
394
33
714
I'm not best placed to answer your question so take mine with a grain of salt... I would say yes it is legal since you had not actually formally agreed on and finalised the financial separation (I assume). Unless you could prove somehow that she was stalling in order to wait for house prices to go up, I'm not sure there would be much you could do.

However, as these things are always a negotiation until the point where a judge is forced to decide, I would argue the point that as she has not contributed to the mortgage since leaving, you would accept a formal independent valuation only if the agreed value subtracts the increase in market values of houses in the ACT over this period (say 2%?). I can only assume that the judge would factor in that she has not contributed, house prices have increased and that you have made further changes.

Perhaps the one thing not in your favour is that regardless of whether house prices have gone up or down, the presumption is likely that she would be looking at purchasing her own house following the separation, and therefore would pay market rates. So until she gets the money, she is unable to purchase her own home and is therefore fully reliant on a fair share of the proceeds of the sale of your current house. If house prices have increased, she would also need more to buy her own house, and therefore there may be the argument that she is entitled to her share of the increase in value of the house. Just a thought. It gets pretty messy.
 

Atticus

Well-Known Member
6 February 2019
1,245
197
2,394
Is this legal,
It's not illegal or unlawful to make a proposal... You don't have to accept it, but, if it were to go to court chances are they would require a current market value...

If you decide to accept it, I would also let them know that as the property has been improved since the last valuation at your own cost, that will have an influence on the value... Having regard to Section 79 (4) (a) & (b) of the family law act, that must be taken into account in your favour...

Reference >>> FAMILY LAW ACT 1975 - SECT 79 Alteration of property interests