DIVORCE APPRAISALS
Divorce Settlement Appraisals
Divorce can be difficult for all people involved, and the last thing anyone wants to do is make the process more hurtful for the opposite party. When a divorce involves real estate, things can get even more complicated. Typically the house is still under a loan with a bank and one party could have paid more in mortgage payments. However, there are typically two options homeowners can take when it comes to divorce settlement appraisals here in Utah:
When selling the property and dividing profits, both parties benefit from the highest valuation possible. This can even be done while going through your divorce proceedings so that you can use any profits obtained from the sale to help with lawyers fees.
The home can be sold, and profits can be divided.
In this scenario, one party will keep the home and the other party will receive compensation from their portion of the marital asset. The party keeping the home benefits from a lower valuation and the party being bought-out benefits from a higher valuation.
One person can buy out the other’s Equity in the home.
Regardless of the option, it is in the best interest of both parties to obtain a professional divorce appraisal of the property being divided.
Commonly Asked Questions
During a divorce, the two parties involved must divide their assets, especially their property as it’s probably the largest asset. This includes all real estate holdings, not just your home. A divorce appraisal performed by a licensed appraiser is how you will most likely make sure that your home is split fairly between both parties.
Why do I need an Appraisal?
Well, Yes and No. Most of the time your lawyer will recommend an appraiser. Divorce attorneys deal with this all the time and usually have preferred appraisal companies that specialize in divorce appraisals that will give an honest valuation, unbiased by either party. In some instances lawyers will let you decide. Most of the time this isn’t recommended because it can be contentious between parties. If this does happen, then you will be forced to hire a third party appraisal company. In rare instances, the judge can order the divorce appraiser in Utah to testify in the court proceedings. That’s why a neutral third party appraiser is essential, and is approved by both parties.
Do I get to choose my Appraiser?
In most divorce proceedings, the couple will split the appraisal 50/50. This is always true unless one party is buying out the other party. Then the buyer will pay for the appraisal.
Who pays for the Appraisal?
To determine the value of your property, your appraiser will look at both the fair market value of the home as well as the net proceeds that will be split between both parties. For the listing price of the home, if you were to sell the property, your appraiser will determine what your house could reasonably sell for. This takes all factors into account. The net proceeds is the amount that both parties will split once the home is sold. Your divorce appraiser will subtract what both of you owe on the home and then the remaining balance will be split evenly unless one party decides to give the home to the other party.
How do you determine value?
At Utah Appraisal Solutions, we aim to provide a fair, unbiased opinion of value. No matter which route is taken to divide assets, our appraisal processes are consistent and do not change based on which party is seeking the services of our divorce appraisers. In a difficult time, you can rest easy that the appraisal of your home will be handled confidentially and with the highest level of integrity. Please contact us anytime so we can help you navigate this important step quickly and as economically possible.