Should we now get another house valuation for our divorce financial negotiations?

Q. Should we now get another house valuation for our divorce financial negotiations?

A.  If you are still negotiating your divorce financial settlement and you had your house valued before Covid-19 struck the UK, you may be wondering whether you need to get another house valuation. With many parts of the property market effectively ‘paused’, the likely impact on house prices is currently unknown. Some RICS regulated members have noted a ‘material valuation uncertainty’ in their reports, meaning that the current uncertainties make their reports less reliable than in normal circumstances. Of course, physical valuations are currently prohibited anyway.

We will need to be guided by the professionals in terms of the actual impact on house prices, which is likely to take some time to show itself within the market and once the markets are open again.  Our family solicitors will be working closely with our residential property department to keep matters under review, as well as ensuring regular updates with mortgage brokers and estate agents.

If there is likely to be a material difference in your house value, then this will be a significant factor for consideration, especially in circumstances where one party is buying another out of the property for a fixed amount, rather than the house being sold. Of course, if the house is to be sold anyway, you will be guided by the agents and take their advice on the market conditions at that time anyway.

In circumstances where a significant change is anticipated or is likely, it will be important to seek advice and most likely revised valuation, at the right time and if in your interests to do so. 

If you are negotiating on a voluntary basis, you can agree the next steps via your solicitors.  

If you are in proceedings, timescales are more critical and you must consider the court timetable and directions. It is possible that an application may be necessary to adjourn or vacate a hearing, or to apply for a valuation report in due course. Although, whilst in limbo, every case needs to be considered and planned very carefully in terms of if and when it would be appropriate to take any action at all. The courts will not appreciate premature applications, especially with no evidence in support.   

If you have already reached an agreement and a material variation in the house value will change the effect of that agreement or order, seek urgent advice. It is possible that such variations may constitute what is known as a ‘Barder event’, providing an opportunity to vary the order. However, this is new to everyone and a complex matter for consideration on a case by case basis.

If you find yourself in limbo and don’t know what to do, please consult our Family Law solicitors.