Divorce Appraisals
Dividing Assets in Divorce? How do you know when you need a Divorce Appraisal?
Divorce & Dissolution Services
Fair Market Value for Equitable Distribution
No one gets married planning to get divorced, but unfortunately, sometimes it is the best option for both parties. If you find yourself in this situation, you will have to agree to the division of all of your assets. Personal property items, bank accounts, credit card debt, and retirement accounts will be relatively simple because they have a finite or definitive value. Issues may arise when you try to divide your most valuable asset, your home.
If the divorce is amicable you may be able to agree on a value using a real estate agent or an AVM like Zillow, Redfin, or Realtor.com. Most suburban subdivisions will have plenty of data points to make these models relatively accurate and if all three are within a few thousand dollars we recommend using these appraised values to agree upon the home's fair market value.
When there is a mortgage on a home and there is no cash or other marital assets available for one spouse to "buy out" the other who is leaving the marital home, the real property can be refinanced through your lender. An appraisal will be completed by the bank and whatever that value is can be the finite amount that can be used to divide assets equally.
Signs You May Need an Independent Appraiser:
Select an Appraiser with Courtroom Experience
When selecting a home appraiser, choose one with courtroom experience. Expert witness testimony may be necessary if the parties do not settle on an agreed value of the home. The ability to defend the independent appraisal in front of a judge and opposing divorce attorney is paramount. Being able to explain complicated appraisal theory as well as professional appraisal practice to laymen is important in communicating appraisal results.
Definition of Market Value
According to The Appraisal of Real Estate, 15th Edition (Appraisal Institute):
"The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus."
- • Buyer and seller are typically motivated
- • Both parties are well informed or well advised
- • Reasonable time allowed for market exposure
- • Payment in cash or comparable terms
- • Price unaffected by special financing or concessions
Retrospective Appraisals
Divorce appraisals often need more than one effective date. Consider a scenario where a spouse bought the property on their own in 2005, lived with their fiance since 2011, got married in 2018, and filed for divorce in 2020. Look for a licensed appraiser who specializes in divorce, probate, trust, and financial planning and they will be qualified to complete retrospective appraisal assignments in your local market.
Turnaround & Cost
The typical turnaround time for divorce appraisals is one to two weeks and generally costs two to three times the amount you would pay for a lending appraisal. The more complex the property and if multiple effective dates are needed, the higher the appraisal fee.
Expert Testimony Fees:
$1,500 Court Appearance • $300/hr Testimony
$150/hr for meetings, preparation & research
Definition of Market Value
According to The Appraisal of Real Estate, 15th Edition (published by the Appraisal Institute):
"The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
- •Buyer and seller are typically motivated;
- •Both parties are well informed or well advised, and acting in what they consider their own best interests;
- •A reasonable time is allowed for exposure in the open market;
- •Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
- •The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
Don't Hesitate to Reach Out
Eagle Home Appraisal offers a high level of professional expertise, privacy, and integrity in delivering quality appraisal reports for our clients that they can depend on. Please contact us by email or phone to answer any questions you may have regarding valuing your property during a divorce. Our fees are higher than most and in many cases, a full appraisal report is not necessary for every situation but we are more than happy to answer any questions that may ease your mind during this turbulent time.
Contact Us Today