Expert Opinions and Reports in Financial Matters

When there is a dispute about the value of an asset in your property pool it is prudent, if not necessary, to obtain expert evidence from a valuer.

The most common valuations undertaken in family law proceedings are real estate valuations, determining the value of the former matrimonial home or other properties owned by the parties, either jointly or separately, or business valuations if there are business or company interests.

In other cases, an expert opinion may be required if an issue lies outside of the expertise of the Federal Circuit and Family Court of Australia (“Court”).  To name a few, these could include; special tax implications of disposing or transferring an asset in international jurisdictions; remuneration specialists in analysing party’s earnings and their income/earning capacity; and the structural integrity of the home which will affect the market value of the home.

Federal Circuit and Family Court of Australia Procedures

There are rules that guide both the valuation expert and court litigants in respect of the expert valuation process.

The purpose of these rules is to ensure that primarily:

1. experts are only engaged where there is a significant issue in dispute;

2. the evidence is prepared in a manner which the Court can rely upon; and  

3. the parties avoid unnecessary costs of appointing more than one expert witness.

In simple terms, the Court allows the parties to jointly appoint a single expert for a particular valuation issue in question. Once appointed, a party may seek leave for the appointment of an adversarial expert, or to rely upon adversarial evidence to put the single expert evidence into question. This however, can only be done with the Court’s permission.

In the matter of Bloxham & Bloxham (No. 3) [2021] FamCA 70, Dorter Family Lawyers & Mediators were successful in defending an application of the other party seeking to rely upon an adversarial expert report. In this case, the parties’ interests in a business were sold (in conjunction with other business entities). The Applicant Husband was unsuccessful in obtaining permission to rely upon this valuation report because:

1. the report was not a single expert report;

2. there was no single expert appointed to value the parties’ interest in the business and therefore the report could not be relied upon as an adversarial expert; and

3. it was  not necessary for the Court’s determination of this proceeding to have valuation reports at different periods in time.

Dissatisfied with the Expert Report?

In circumstances where a single expert is appointed through joint instructions, you may feel like you are bound by their opinion presented in their report. However you are entitled to clarify the expert’s report either through a conference or by asking written questions within 21 days of receipt of the report.  

In the event the expert provides an opinion outside of their expertise, and/or fails to consider relevant information, and/or has made assumptions that should not have been made, the expert’s opinion can be challenged including through the cross-examination process at a final hearing.

Do you have valuation disputes in your financial settlement and require expert advice?

To obtain specialist family law advice in all areas of family law, including obtaining and disputing expert evidence, contact our expert family lawyers at Dorter Family Lawyers and Mediators on (02) 9929 8840 and we will assist you.