A divorce is an emotionally draining affair with a great deal of inherent mistrust and contention. Even in the most amicable cases, divorcing couples find it tremendously difficult to discuss, negotiate and agree on the division of assets, particularly the family home. Also known as the matrimonial property, this shared asset is often the largest and most significant to both parties.
Matrimonial property valuation can take a great deal of the pressure off of a divorcing couple and is worth considering to help divorce proceedings move to a fair settlement that benefits everyone. This article will explain the basics of matrimonial valuation, how it is done, and why it is necessary to consider right at the start of any marriage dissolution.
What is Matrimonial Property Valuation?
Essentially, matrimonial valuation is an unbiased, objective value calculation of matrimonial property. However, this valuation is far more in-depth than a simple market appraisal or the initial price paid when it was first purchased or built.
Matrimonial property is valued on several additional factors, including but not limited to:
- Property size
- Property condition and specifications
- Planning and construction concerns
- The location and surrounding area
- Local market value
- The value of comparable properties
- Environmental concerns
Furthermore, it takes into account the time of purchase of the property, changes in market value over the years, and UK laws, regulations, and standards.
Given its complexities, this type of valuation can only be properly done by a qualified chartered surveyor who has the training and understanding of all these inherent issues and can provide a true valuation.
Why is Matrimonial Valuation Important?
The division of assets is often the most time-consuming aspect of divorce proceedings, and until it is completed and decided, a divorce cannot be finalised. Unfortunately, these negotiations are often clouded by emotions. Without a business-like approach, divorces have a tendency to drag on as every asset becomes a highly debated dispute. The more valuable the asset, the harder it is for parties to compromise and find an agreement.
Matrimonial properties are some of the most fiercely contested assets. While both parties are looking for fair settlements, they want the other party to favour their own requirements. For example, if one party wants to stay in the family home, they want a lower valuation to buy the other out. Alternatively, the party leaving the property will want a higher valuation to get new accommodations with the money released.
Then, if multiple properties or foreign properties are involved, the interests become even more complex, and dividing assets becomes even more daunting.
In such situations where divorcing couples cannot come to an arrangement, hiring a neutral professional who can objectively value any matrimonial property is the right choice. By taking out the ambiguity, a chartered surveyor provides clarity that can be used to negotiate who gets what.
Other benefits of a proper matrimonial valuation include the following:
- All parties will know the true value of any matrimonial property
- Calculations are not influenced by any motives or emotions
- Valuation reports can be submitted as evidence and used by a judge to divide assets fairly
- Court proceedings can continue more smoothly
- Lengthy legal disputes can be avoided, reducing legal costs
- Both parties can receive what is rightfully theirs
Real Estate Agent vs Chartered Surveyor
A common misconception divorced couples have is that a real estate agent can value a property accurately enough to determine a settlement. They assume that since a real estate agent deals in property matters, they have the expertise to provide a realistic valuation.
However, it is important to understand real estate agents can only tell you how much they can sell a property for. They cannot value it because any estimation they give is influenced by current trends, property forecasting, and the real estate agent's opinions, which can inflate or even devalue a property.
Also, a real estate agent’s estimation is not governed by any standards. This is one of the reasons when you talk to five different real estate agents, you get five different property values.
On the other hand, chartered surveyors are trained professionals who can impartially value property with their in-depth expertise and experience. They will go to the site and thoroughly inspect the foundation to the roof to identify any factor from construction to planning that can affect valuations.
Furthermore, a chartered surveyor does not represent either party during a divorce or has no personal interest in the property; hence the final report is free of any conflict of interest.
It is highly recommended to have your matrimonial property valued by a professional who is part of the Royal Institution of Chartered Surveyors (RICS). This globally recognised organisation strives to uphold the highest international standard of property dealings.
An RICS chartered surveyor can prepare a comprehensive report that details all their findings that both parties can accept. Additionally, this report is recognised by courts and mortgage and insurance companies.
Can a Matrimonial Valuation be Disputed?
In cases where one party of a divorcing couple hires a professional's valuation services, the other side may feel the matrimonial property was unfairly or unrealistically valued. Similarly, one party may refuse another valuation when one has already been done.
Either case can lead to disputes and delay divorce proceedings. This is why it is recommended that both parties jointly appoint a chartered surveyor to value all matrimonial properties independently. Certain factors to keep in mind include:
- The chartered surveyor is a member of the RICS and RICS certified
- They follow the guidelines outlined in the Red Book, a publication by the RICS that specifies standards all members must follow.
- They comply with the guidelines of the Matrimonial Act of 1973
- They have experience valuing properties of similar size, specifications, and age to the matrimonial property
In the case of any dispute to the final valuation, this professional becomes the expert witness who can explain how they determined the property's value with evidence, thus providing reliable testimony. By removing all elements of uncertainty, professional valuation allows the court to make a fair decision.
Why Work With AJA Chartered Surveyors
With over a decade’s experience independently surveying properties in the South East London area, Aston James Associates (AJA) has assisted many divorcing couples through their matrimonial property valuation issues since 2011.
As RICS-certified chartered surveyors, we are well-versed in all the regulations and standards set forth by the RICS and strictly adhere to them. Furthermore, our valuation reports are evidence-based and completely valid, complying with The Matrimonial Act 1973, Part 25, the Matrimonial (FPR) 2010, and practice directions 25B, 25D, and 25E of The Family Court.
Working with legal advisors and even one-on-one with our clients, we strive to ensure integrity and transparency, thus limiting the chances of valuation disputes.
Our only interest is helping divorcing couples reach a fair settlement as quickly as possible during this stressful time. For more information about our services, contact us today and schedule an appointment.
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