How Is Property Valued for Divorce Settlements?

When couples divorce or separate, property is often the most valuable and emotionally charged asset to be divided. As valuers, we are frequently instructed to provide an independent and impartial opinion of value to assist solicitors, mediators, and ultimately the court in reaching a fair financial settlement.

In divorce proceedings, the objective is fairness, not punishment or reward. To achieve this, we must first understand what assets exist and what they are worth.

Property valuations provide an objective financial foundation for negotiations, mediation, or ultimately court decisions.

Without an accurate and properly prepared valuation:

For these reasons, mediators, courts and solicitors place significant weight on professionally prepared valuations.

In most divorce cases, property is valued at open market value. This is generally defined as:

The estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller, in an arm’s-length transaction, after proper marketing.

This definition aligns with internationally recognised valuation standards, including those published by the Royal Institution of Chartered Surveyors (RICS).

The valuation is usually carried out as at a specific date, which may be:

In divorce proceedings, property valuations are typically undertaken by:

In some cases, the valuer is appointed as a Single Joint Expert (SJE). This means:

Guidance on the role of experts in family proceedings can be found via the UK Courts and Tribunals Service:
https://www.gov.uk/courts-tribunals/family-court

1. Instruction and Scope

The valuer receives formal instructions, usually agreed by both parties’ solicitors. These instructions define:

2. Inspection

A physical inspection of the property is normally required. This allows the valuer to assess:

Desktop or online valuations are rarely appropriate for divorce proceedings, as they may lack the detail and reliability required by the court.

3. Market Analysis

The valuer analyses comparable sales evidence—recent transactions involving similar properties in the same or comparable locations.

Factors considered include:

This evidence-based approach ensures the valuation reflects real market behaviour.

4. Valuation Methodology

For most residential property, the Comparable Method is used. For more complex assets—such as:

additional approaches may be required, including investment or residual methods.

The methodology must be clearly explained in the report so that solicitors and judges can understand how the value was reached.

5. Reporting

The final valuation report sets out:

Solicitors – Family solicitors rely on property valuations to advise clients on settlement options, model different asset division scenarios and support negotiations or court submissions.

A clear and well-reasoned valuation can significantly reduce disputes and legal costs.

In mediation, an agreed valuation helps remove uncertainty and emotion from discussions. When both parties trust the valuation, they are more likely to reach a voluntary settlement.

Financial planners may use the valuation to:

If you are going through a divorce or advising a client and require an independent, court-compliant property valuation, obtaining professional advice early can save time, cost, and stress.

Get touch to find out more or get a quote today.