When divorcing couples sit down to discuss the sensitive issue of property division, their talks are unlikely to be productive if they do not know how much their assets are worth. The most valuable marital asset is usually the primary residence, which is why many divorcing couples choose to have their homes appraised before negotiations begin. Obtaining an appraisal from a professional that both spouses trust is particularly important in states like California where community property laws require marital estates to be divided equally.
Full appraisals
When a divorcing couple knows how much their home is worth, they can calculate how much equity will be left to be divided after the mortgage is paid off. The value of a home can be determined by completing a comparative market analysis or performing a full appraisal. A comparative market analysis is based on recent sales data and does not include a home visit, but a full appraisal is far more rigorous. Before placing a value on a home, a professional conducting a full appraisal will inspect the property and create a list of issues that should be addressed. They also check community data and crime rates.
Appraisers should be experienced and qualified
Appraising the family home only makes property division negotiations less contentious when both spouses are satisfied with the appraiser’s work. This is why it is important to choose an experienced and qualified real estate appraiser. In California, residential real estate appraisers, certified residential real estate appraisers and certified general real estate appraisers must complete classroom courses on appraisal practices and state law. They must also have minimum levels of experience.
Productive talks
Property division talks are more likely to be productive when both spouses know how much their assets are worth. Real estate appraisals are often obtained during divorces because the primary residence is usually the marital estate’s most valuable asset. Obtaining an appraisal performed by a qualified professional is especially important in states with community property laws like California.