Per the Pew Research Center, a person’s main residence is typically their most valuable asset, but establishing its exact value (applicable to all forms of real estate) can be challenging. One way of preventing disputes concerning the value of real estate, which can help spouses achieve favorable settlements and courts make accurate decisions related to asset division, is to utilize a real estate appraiser’s services. Understand the importance of real estate appraisers with regard to property division during divorce, and discover how King Law Offices may assist spouses with their divorce issues; call our firm today at (888) 748-KING to continue this discussion with an experienced South Carolina family law attorney.
Who Are Real Estate Appraisers?
A real estate appraiser refers to a person who determines a property’s value via a process known as an appraisal. In addition to helping real estate owners who want to sell their assets to identify a suitable asking price, their valuations can ensure a fair distribution of assets when a married couple decides to get a divorce. These individuals may specialize in valuating residential or commercial real estate (for example, shopping malls, office buildings, hotels, and holiday resorts) or both.
They also produce unbiased, objective estimates of a property’s value for tax assessments, lease negotiations, and mortgage lending by inspecting the asset’s features and making comparisons with similar properties. During their valuations, they visit each room within a property to assess its interior condition, examine the outside of a property to establish its exterior condition, watch out for health code or safety violations, and evaluate the asset’s amenities. After a financing organization, mortgage lender, or other individual/entity hires the appraiser and arranges an appraisal date, the real estate appraiser typically completes their appraisal within a few hours and then forwards a valuation report to the client, with the exact timeline for receiving this depending on the type of appraisal conducted and the size of the property.
Why Get a Real Estate Appraiser During Divorce?
An appraiser’s accurate and unbiased assessment of an asset’s value and its equity, which adheres to ethical codes and professional standards, ensures both spouses receive fair treatment regarding the division of assets in a divorce. In addition, an appraiser can give the spouses an up-to-date valuation, backed by evidence and data, as well as detailed information concerning an asset, such as its condition and how they may improve the asset’s value by carrying out certain restorations or repairs. Combined with providing the divorce court with fair and accurate information, alongside other parties in the divorce process such as attorneys and lenders, an appraiser can help prevent discrepancies and confusion, leading to an improved chance of all parties receiving a favorable outcome.
Understanding Divorce Appraisals and Appraiser Disagreements
The divorce appraisal process typically involves both parties agreeing to hire a suitable real estate appraiser, selecting the appraisal date, which can significantly affect the valuation (particularly if the asset’s value changed during the marriage), and choosing a specific appraisal method. Some common appraisal approaches include assigning a value based on a sales comparison of similar assets in the local area, estimating the asset’s value based on the potential income it might generate, and identifying how much it would cost to replace the asset. If the spouses cannot agree on this process, they have several options, as outlined below.
Hire Multiple Appraisers
The spouses may each hire a real estate appraiser and then make results comparisons. If there are significant differences, they may try to reach a compromise or ask another appraiser to check and reconcile the appraisal reports.
Find out more about the impact of real estate appraisers in property division during divorce, and learn how a seasoned South Carolina divorce lawyer can help answer your divorce-related queries. Contact King Law Offices today to book a confidential consultation.
Consider Arbitration
Another option entails asking an arbitrator (an impartial third party) to check and evaluate each appraisal report and make a legally binding decision regarding the property’s value. Ideally, the parties would select an arbitrator experienced in handling divorce and asset division matters.
Pursue Litigation
As a last resort, the parties can opt for litigation, where a judge determines the property’s value. To do this, the judge considers all appraisal reports and testimonies, as well as other evidence presented by the spouses.
Can a Real Estate Appraiser Be a Witness in a Divorce?
If the spouses cannot resolve asset division issues amicably, such as via negotiation, mediation, or a collaborative divorce, the courts ultimately decide. In divorce litigation, a real estate appraiser can act as an expert witness, and their testimony typically carries considerable credibility and weight, which helps judges understand the value of assets and how to divide them. During an appraiser’s testimony, they can share their findings, explain how they assigned a value to the asset, discuss local housing markets, describe how the current economic climate can impact asset division, and answer queries asked by attorneys and judges.
When testifying, an appraiser might also highlight each spouse’s contributions to an asset’s value, and if one or both spouses wish to delay the sale of an asset due to a struggling economy, the appraiser may offer the court an idea of when prices may recover. Worth noting is that the spouses can choose to use different appraisers as expert witnesses in divorce litigation, and depending on how each appraiser approaches asset valuation, they could offer different points of view concerning a property’s value and other areas of asset division.
How Does the Appraisal Date Impact Property Division in a Divorce?
One of the main factors impacting an appraisal’s results is the appraisal date, referring to the date when the appraiser provides their opinion of the asset’s value. For instance, this date could be set as the inspection or report date, reflecting the asset’s current value, an appropriate option for spouses who want to buy the other spouse’s stake or sell the property shortly after receiving the appraisal report. Alternatively, the appraisal date might be a retrospective one, reflecting the asset’s value at a previous specific period, which could be ideal for spouses who want to know the asset’s value at the beginning of the marriage or at the divorce filing date.
Some appraisals utilize several appraisal dates, known as date-to-date appraisals, reflecting the asset’s value at different points in time, ideal for spouses who want to compare the change in an asset’s value between marriage and divorce or between the divorce filing date and the current date. While these appraisals are highly complex, requiring additional research and analysis that takes into consideration property and market fluctuations over time, they can identify how each spouse has contributed to the asset’s increase or decrease in value during the marriage, which can help determine how to equitably split the asset between the spouses.
Discuss Your Divorce Questions With a South Carolina Family Law Attorney Today
The Bureau of Labor Statistics (BLS) defines a real estate (or property) appraiser as an individual who provides their client with an estimate of the value of their real estate and other tangible assets. During divorce, real estate appraisers’ roles typically involve establishing the accurate market value of a person’s home and their other major assets, including other properties, which helps ensure equitable property division. To learn more about how real estate appraisals work, as well as their implications, consider speaking to a knowledgeable South Carolina divorce attorney from King Law Offices by calling (888) 748-KING.