Settling property division matters during divorce can be a complicated process. Spouses have to agree on certain key details, including whether one spouse retains certain assets or the spouses need to sell them.
They may also need to agree on what assets are worth to factor them into other decisions fairly. In cases where spouses don’t reach an agreement, they may need to litigate and have a judge settle their disputes. The marital home where couples live together and any secondary properties that they own in common, including vacation homes and investment properties, could become a source of conflict during divorce, for example.
Who determines the value of real property during the divorce process?
Professional valuation may be necessary
The amount that spouses originally paid for the home may not be a realistic representation of its current fair market value. Property prices can shift substantially over time due to changes in the market and improvements to the home.
Homeowners may need to consult with a real estate agent. They may also want to hire an appraiser in cases where the local market has seen substantial changes in recent months.
Ideally, spouses agree on a home valuation that they find fair. If they don’t reach an agreement, then a judge may review documentation, including appraisal reports or estimates provided by agents, to determine what the home is worth as they make decisions about property division.
Knowing what property is worth is critical for people preparing to litigate or negotiate property division matters in an upcoming high-asset divorce. The value of a property can influence who keeps a home and/or how spouses address other assets within their marital estate.
