What’s it worth?

During your relationship there has probably been only a handful of times that you and your partner turned your mind to what is your net worth.

It might be when your accountant suggests you review your assets and liabilities.

It might be when your financial planner nudges you towards some planning for retirement.

Maybe it is when you are applying for finance

Or perhaps you added it up when you were trying to figure out where all your hard earnt was spent.

That’s why often the first step in figuring out a family law settlement is challenging, when having separated you need to figure what are your assets and what are your liabilities. That step is taken to figure out what is the pool of assets to be divided between you and your ex.

But how do you figure out what the assets are worth?

Often, a separating couple will be able to reach agreement on the value of their assets. Just from their own opinion.

Other times, the question of what an asset is worth can be determined by the parties making enquiries, obtaining market appraisals or just undertaking some internet searches.

For motor vehicles, a Redbook search is often enough — providing information of the value of vehicles considering the condition and kilometres of the vehicle.

Shares can be assessed easily from ASX records and superannuation from latest balances obtained online or through a family law “Form 6 superannuation information statement” being sent to the super fund.

Often, parties will have a differing opinion of the value of an asset but be able to agree on an “agreed value” (often somewhere between their two opinions) to avoid prolonging negotiations or to the expense of expert valuations.

If agreement on the value of an item cannot be reached, then it will be necessary to solve the question of what something is worth by engaging an expert to provide a valuation. That might be a property valuer for land or a home, a forensic accountant for a business or an expert for a classic car or antique furniture.

Having separated, you could try and navigate your way through figuring out what your pool of assets is worth on your own, but a much more sensible approach is to get some advice specific to your situation. From there you can if you want have some conversations regarding values with your ex safe that you have accurate knowledge of what is the right way to treat valuation issues in a property settlement.

You can discuss such matters in an initial family law appointment with an OFRM family lawyer – click here to book that appointment.