Property Prices and the Family Court: The Consequences of Delays on Valuations

When property prices move — up or down — during a family law matter, it can have major consequences for how assets are valued and divided.
In recent years, fluctuating interest rates and housing market shifts across NSW have meant that delays in finalising property settlements can significantly change the value of a party’s entitlement.

At Wallen Family Law, we regularly help clients understand how timing, valuation, and market movement can affect outcomes — and how to protect themselves from being disadvantaged by delay.

1. Why Valuation Timing Matters

Under the Family Law Act 1975, property settlements are based on the current value of assets — not the value at separation. That means if your property increases or decreases in value between separation and final orders, the change will be reflected in the final asset pool.

The longer it takes to finalise your matter, the greater the potential for property values to shift — which can significantly alter each party’s share.

2. Common Causes of Delay

Property settlement delays can occur for many reasons, including:

• Disputes about disclosure or business valuations

• Delays in selling property or obtaining finance

• Negotiations breaking down before mediation

• Court backlogs or procedural issues

While some delays are unavoidable, others can be managed with good preparation and early advice.

3. The Impact of Rising or Falling Property Prices

Fluctuating property values can work for or against either party depending on who retains ownership and how the timing plays out.

If property prices rise:

• The spouse retaining the home may benefit from increased equity.

• The other party’s entitlement may need to be reassessed, particularly if valuations are outdated.

If property prices fall:

• A party retaining real estate may bear a larger portion of the loss.

• Settlement terms based on old valuations may suddenly become unfair or unsustainable.

In both situations, updated valuations are essential — and delay increases the risk of one party feeling short-changed.

4. Case Example: Changing Market Conditions

Courts have acknowledged that property market movement can create inequity if values are outdated.
In Jenkins & Jenkins [2019] FamCA 293, for example, the Court noted that fluctuating property values and delayed proceedings made it necessary to obtain fresh valuations before final orders were made.

The Court reaffirmed that valuations should reflect present-day market conditions, ensuring outcomes remain just and equitable under section 79 of the Family Law Act 1975.

5. When to Update Valuations

As a general guide:

• If your valuation is myour lawyer can request updated valuations before settlement or trial.

• In mediation, both parties should agree on a joint single expert valuer to ensure neutrality and minimise disputes.

6. How the Court Treats Delay

The Court has broad discretion to consider the effects of delay when making orders — including changes in property value, debt levels, or contributions made after separation.
However, there’s no automatic adjustment for market movement. The Court assesses whether the result remains “just and equitable” in light of all circumstances.

That’s why acting proactively to finalise your property settlement — not waiting — is critical.

Wallen Family Law — Family Law, Made Clear.

If you’re in the middle of a property settlement, don’t let delay or market changes reduce your financial outcome.
We can help you update valuations, assess timing risks, and finalise your matter efficiently and fairly.
📍 Based in Wollongong, assisting clients across NSW.
💬 Book your free 15-minute consultation today for clear, practical advice.

This article provides general information only and should not be relied upon as legal advice. Every family law matter is unique and requires specific legal guidance. Always seek professional legal advice for your specific situation.