At what date are different items of relationship property valued?

If you are involved in a relationship property dispute, it is important to know at what time different items of your relationship property will be valued. Different items of relationship property may be valued at differing dates, depending on their nature.

The Property (Relationships) Act 1976 provides the general rules for the division and valuation of relationship property.

The law outlines that, generally, relationship property is to be valued at the date of a Court hearing. However, the Court has the discretion to set a different date of valuation if appropriate.

Houses and vehicles

As outlined above, the Court will generally value relationship property such as houses at the date of a hearing. If there are multiple hearings, the valuation will be taken from the date of the initial hearing.

This law applies even if one partner has contributed to the increase or decrease in the value of an item of relationship property after the relationship ended. In those cases, the law allows the Court to make certain awards for such contributions, while the general date of valuation applies.

The law will also apply if the value of the property has changed due to some external factor, such as inflation.

However, the Court may sometimes choose to value the item of property at the date of separation (the date the relationship ended) rather than the date of the hearing. For example, the date of separation may be used to value an item of relationship property that depreciates over time, such as a vehicle.

Shares

The law states that shares are generally valued at the date the relationship ended rather than the date of  hearing. This is because shares are likely to change in value after the date of separation, but unrelated to the relationship.

However, this does not mean that adjustments cannot be made for post-separation contributions to the value of shares. The Court may award a particular party compensation if they have done anything to increase  the value of the shares post the date of separation.

Superannuation

Interests in superannuation schemes are valued both at the date the relationship began, and the date the relationship ended. This is because the value of relationship property in relation to superannuation schemes is only the value which accumulates during the relationship. This is the same for life insurance policies.

These valuation principles are only relevant if the property dispute is pursued through Court proceedings. The law also outlines that parties can come to their own agreement (“contract out”) and decide on their own terms when and how different items of relationship property should be valued.

Relationship property disputes can be stressful and confusing. It is important to know your rights in relation to your relationship property, as well as the opportunities available to you.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Please note that Rainey Collins is not contracted to provide Legal Aid, other than in the Treaty of Waitangi area.  We therefore are unable to take on any Civil or Family Legal Aid work. If you require Legal Aid in those areas, you can search the list of Legal Aid lawyers on the Ministry of Justice website.