In many property cases, a business’s plant and equipment may need to be valued. But which valuation method should be used – an ad hoc sale approach or market value?
Such a situation arose in a recent case (Martin & Crawley [2012] FamCA 1032 on 10 December 2012), where there was a dispute over the value of machinery, trucks and plant and equipment. The husband contended that auction value was appropriate whereas the wife contended that the value should be determined upon the basis of market value in continuing use.
Justice Coleman preferred the valuation to be based on market value for continuing use as this approach reflected the “highest and best use” of the property.
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