Divorces can be messy and stressful. To top it all off, you’ll have to think about dividing your assets, but how exactly do you do that. Your divorce attorney will likely provide you with a step-by-step account of all the things you have to do, including getting a divorce appraisal. If you’ve never done one before, here is a helpful guide to get you through the process and back to your life.
What is a Divorce Appraisal
A divorce appraisal is necessary when two people file for a divorce and have assets that need to be split for purposes of selling, keeping, dividing, etc. It doesn’t matter if the assets are being sold off to pay for debts or simply divided between both parties. Think of this appraisal as a sort of laundry list of all the items you have and what their value is. It’s a lot like what you have to do for insurance companies on large purchases. After you get the appraisal, you can then determine what, if anything, will be done with the items in question. Many people typically consult with their attorney at this phase.
Things to Consider
Depending on when you’re going through this process, you may not be getting the highest valuation. Appraisals are based on comparables (like-type properties/sales in the area) and the comparables highly influence the current appraisal. This is why you might see your valuation number change if you’ve had an appraisal in the past. It is possible to get two appraisals or a second opinion, but it’s something you should be aware of.
Things to Ignore
If you’ve had an appraisal in the past or a past home inspection, you’ll probably want to ignore it. You’ll likely need both in a divorce, especially if the estate or property will be sold. You’ll also want to ignore the direct value of the appraisal, here’s why. Let’s say your house is valued for 100,000. That’s great! However, if you’re planning on selling it, it’s a buyer’s market, so there is no guarantee that’s what you’ll get for the house. Not to mention if you have to split any of that amount with your spouse, have to cover closing costs, etc. This goes for any land you may own and other valuables. Ask your appraiser and attorney for more specific information, but keep your mind open for changes during this process.
Unfortunately, divorces are a fact of life. Here at CMP Appraisals we offer our extensive knowledge to help you get through any situation and back to the task at hand. Call or drop by for more information on divorce appraisals and the other services we offer. We’re always here to help you.