Valuable Assets

Specialist family law valuation lawyers for complex assets

When you’ve built a business, accumulated significant investments or hold assets through companies or trusts, separation can raise difficult questions. You may be worried about whether you’ll need to sell important assets, how your business will be affected or whether the full value of the property pool will be recognised.

Complex and high-value assets can make a property settlement more challenging, particularly when their ownership or value isn’t straightforward. Understanding what forms part of the property pool and what each asset is really worth is an important step towards protecting your interests and reaching a just and equitable settlement.

Watts McCray are leaders in complex family law property matters. Our accredited family law specialists have extensive experience in high-value and multi-asset cases and work closely with expert valuers to ensure assets are properly identified, assessed and accounted for during property settlement negotiations.

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What happens to valuable assets in a property settlement?

A property settlement involves more than simply dividing the assets held in each person’s name. Each party has an ongoing duty throughout negotiations and court proceedings, to provide full and frank disclosure of relevant financial information and documents. This can include property, liabilities, superannuation and interests in businesses, companies, trusts and other investments.

The treatment of a particular asset or financial resource will depend on its nature, ownership, control and the circumstances of the case. Each party’s various contributions and their current and future circumstances are considered to determine a division that’s just and equitable.

This process can be more complicated when the property pool contains valuable or complex assets. There may be questions about who owns or controls an asset, whether another person or entity has an interest in it and how its value could be affected by tax, debt or the way it’s transferred. Some assets may also produce income or be difficult to sell or divide without affecting their value, or without a key person remaining in a business.

Before the parties can meaningfully negotiate how these assets should be divided, they need reliable information about what is included in the property pool and what each asset is worth.

This is where an independent family law valuation may become necessary.

Understanding family law valuations

A family law valuation provides an independent assessment of an asset’s current value. It may be required when the parties can’t agree on an asset’s value or when an asset is too complex to assess reliably without specialist expertise. Without an accurate valuation, it can be difficult to understand the true value of the property pool or negotiate a fair settlement and you could risk losing a fair share of settlement.

When are valuations required under family law?

Valuations are often appropriate when:

Parties disagree on the value of the asset
There are complex or high-value holdings
Assets are held through companies or trusts
Businesses or professional practices are involved
A reliable value is needed to negotiate or finalise a proposed settlement

This can often apply to assets such as:

Real estate (residential and commercial)
Businesses and professional practices
Interests in trusts and companies
Superannuation
Investments and shares
Vehicles, jewellery and collectibles

How is a valuer appointed?

Engaging an experienced and qualified valuation expert to provide accurate valuations of assets can help you obtain reliable evidence about the value of complex assets. The valuer may work alongside your trusted legal team to provide an independent opinion that can assist negotiations or Court proceedings and help achieve fair and equitable property settlements.

Where Court proceedings are going forward, and the parties agree that expert evidence could help resolve an issue related to high value assets, they may jointly appoint a single valuer. The Court may also order a single expert witness.

The relevant provisions are contained in Chapter 7 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021. Rule 7.03 deals with the joint appointment of a single expert witness by the parties, while rule 7.06 deals with their fees and expenses.

It’s important to remember, a single expert witness owes their primary duty to the Court, not to you or your ex. Appointing one valuer is great because it can help curb costs and eliminate disputes about competing valuations. However, the appropriate expert and appointment process will depend on the asset, the issues in dispute and whether Court proceedings have started.

The parties may agree how valuation fees will be paid. If they can’t agree, the Court may make directions about the expert’s fees and how expenses should be paid.

The ‘asset-by-asset’ approach

There are two broad approaches that a Court uses when they’re tasked with assessing contributions to a property settlement or making orders related to that process.

Global approach. The first is the global approach. In this situation, all the parties’ property and liabilities are pooled and considered together.

Asset-by-asset approach. The second is the asset-by-asset method, where each major item (or group of items) is assessed separately. This allows a jointly owned home to be treated differently to an investment acquired by just one party prior to the relationship, for example.

The global approach is often simpler and more convenient. It is also the most commonly adopted approach, But the asset-by-asset approach can be better where the property settlement is complex. It generally leads to a more precise outcome, which is helpful in cases where certain assets were acquired by one party before the relationship, inheritances or gifts are in dispute, or one party contributed significantly more towards a particular asset.

The Court has the discretion to adopt the most appropriate method in each case, depending on the circumstances.

‘Wastage’ in Australian family law

Valuable assets can lose value quickly if they’re sold, transferred, mismanaged or depleted before a property settlement is finalised. It’s therefore important to identify any actions by either party that may have reduced the value of the property pool.

Amendments to the Family Law Act in 2025 saw the addition of material wastage as an express consideration when it comes to property settlement – an idea which had previously been recognised, but only in case law. Material wastage is where a party intentionally or recklessly diminishes or misuses assets, like property or money. You might see this happening in many ways including gambling, reckless spending, deliberately disposing of assets, running down a business or poor investment decisions that significantly reduces the value of the property.

If material wastage has occurred, the Court will consider what impact this has on the contributions made by each party, and whether this action has impacted the parties’ current and future circumstances. If so, it may take this into account and choose to adjust the property settlement to consider that loss. This can provide for a just and equitable outcome for the party who was not responsible for the loss.

While accurate valuations and clear financial records are important during a property settlement, early planning can also help couples understand and manage complex assets before a relationship breaks down.

Asset protection strategies

There are a number of steps couples can take to plan for the management of assets if a relationship breaks down. While it can be an uncomfortable discussion, early planning may help reduce uncertainty, cost and conflict in the future.

However, asset-protection strategies do not remove the need for full and frank disclosure in a property settlement, and they do not guarantee that a particular asset will be excluded from consideration, or if it is excluded how that impacts the remainder of the settlement. It is important to obtain legal and financial advice before putting any arrangements in place.

Potential asset protection strategies include:

Transparent financial structuring and record keeping
Keeping clear records of contributions, asset ownership, loans and financial arrangements
Obtaining legal advice before creating or changing company, trust or business structures
Financial agreements before separation

A financial agreement may allow a couple to make arrangements about financial matters if their relationship ends. But for it to be binding, it must meet strict legal requirements, including each party receiving independent legal advice before entering into the agreement.

How family law valuations are conducted

1. Appointment of valuer

As discussed above, parties may jointly appoint a single expert valuer where valuation evidence may assist. The Court may also appoint a single expert where appropriate, under Chapter 7 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021. Alternatively, each party may engage a separate valuer.

2. Inspection and analysis

The valuer will inspect the relevant asset and review the information required to form an independent opinion of value. This may include property inspections, review of financial statements, business records, tax returns, company or trust documents, shareholding information, lease agreements and other relevant documents.

3. Valuation report

The valuer will prepare a written report setting out their independent opinion of value, the valuation date, the information relied on, the assumptions made and the methodology used.

4. Negotiation and review

The parties and their lawyers can use the valuation evidence to help negotiate the property settlement. They may consider the value of the asset alongside other relevant property, liabilities, tax consequences and the practical options for retaining, transferring or selling the asset. Each party also has the right to ask clarifying questions of the valuer, if any aspect of the report is not clear.

A valuation is evidence about value, rather than a decision about how the asset should ultimately be dealt with.

5. Court consideration (if applicable)

If the matter proceeds to Court, the Court may consider the valuation evidence together with the other evidence in the case. Of course, it’s not required to accept a valuation on the face of it, and they may determine the weight to give the evidence, depending on what other evidence is available at that time.

Protecting your complex and high-value assets

If your settlement involves complex and high-value assets, you understandably want to know they are protected. It’s therefore imperative you choose the right legal team who understands the process and has experience working with assets of this nature.

Watts McCray has a wealth of experience in cases involving:

Businesses, professional partnerships and franchises
Investment portfolios and self-managed superannuation funds
Interests in family trusts and corporate structures
Overseas assets

We also understand the need to work collaboratively with independent experts to achieve the best outcomes. Our team has an ongoing relationship working with independent family law valuers and forensic accountants to secure your fair settlement.

Our role is to help you understand your options and work towards a just and equitable outcome based on your individual circumstances.

Why choose Watts McCray for family law valuations?

Watts McCray has been supporting Australian families to navigate divorce and separation for more than 40 years. From spousal maintenance to child custody and property settlements, our priority is always to achieve a fair outcome for you and your family. We have a wealth of experience navigating the additional layer of complex, high-value and overseas assets in asset valuation.

Four decades of experience managing complex property settlement cases
Access to a network of independent valuers and financial experts
Trusted for precision, transparency and expert strategy as well as ensuring compliance with Court rules
A team of Accredited Family Law Specialists
Offices in Sydney, Parramatta, Northern Beaches and Wollongong, serving clients nationwide

Watts McCray and the family law valuation process

Many clients want to know what to expect when seeking a family law valuation. Below is the typical client journey when working with the Watts McCray team.

Step 1: Initial consultation

Meet with one of our family law experts to discuss your matter. We’ll work with you to help identify all issues in your situation, including assets and your valuation needs. We can do this in person or online.

Step 2: Appointment of valuer

We’ll discuss with you the appropriateness of engaging an independent expert to support your case, such as a valuer or forensic accountant. We can also liaise with the other party’s legal representatives to jointly engage these independent experts where possible or appropriate. If this isn’t feasible, we can support you to hire experts independently.

Step 3: Analysis and report

The valuer will then be provided with, and inspect all relevant assets and review financial documents and other information to form an independent opinion of value. They will provide their valuation in a formal written report.

Step 4: Negotiation and settlement

As your legal representatives, we will then use these independent valuation reports to attempt to negotiate property settlement agreements with your ex-partner’s legal team. The goal here is to reach a just and equitable division of assets.

Step 5: Formalisation

If you and your ex-partner are able to reach an agreement as to settlement terms, we can document this agreement through consent orders or a financial agreement. If not, you may need to apply to the Court for property orders.

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FAQs

What is a family law valuation? 

A family law valuation is the professional assessment of the value of an asset in family law property settlements. These are carried out by independent, qualified family law valuers, who ae experts in their field. We have a network of trusted professionals we can recommend as needed.

Who can perform a family law valuation? 

Family law valuations should be carried out by independent valuers with expertise in property, business or financial asset assessments.

What is the asset-by-asset approach? 

The asset-by-asset approach is one of two broad approaches available in property settlements. This process sees the parties’ contributions to particular assets assessed separately, rather than considering all property and liabilities together.

This allows for different assets to be treated differently and can be helpful in complicated or unequal financial situations. For example, it may mean that a house bought together is considered differently from an investment unit bought by one party well before the relationship.

The Court has discretion to adopt the approach that is appropriate in the circumstances before determining whether proposed property orders would be just and equitable.

How does the Court treat wastage? 

Material wastage is a recent inclusion in the Australian Family Law Act. If one party intentionally or recklessly reduces property or financial resources, the Court must consider the effect of that material wastage when assessing the parties’ current and future circumstances.

This may affect the overall property-settlement outcome, but it does not automatically mean the Court will adjust the division of assets in favour of the other party.

Can valuations be challenged? 

Yes, valuations can be challenged in certain circumstances. The evidence must show there’s a proper basis to question the report, such as an error or inaccuracy, or an alternate method of assessing value,before it can be contested.

What happens if we can’t agree on values? 

In cases where the two parties can’t agree on the value of assets, they may jointly appoint an independent valuer. If the matter is before the Court, the Court will usualy appoint a single expert witness.

In some circumstances, each party may obtain separate valuation advice. However, the Court’s permission will be required before a party can rely on additional expert evidence about the same issue.

The Court will then consider the valuation evidence and decide what weight to give it. It’s important to note that additional disputes may cost you and your ex-partner more money, time and emotional energy.