The most valuable assets jointly owned by spouses required careful consideration during divorce. Some people choose to sell the home where they live, while others agree to let one spouse retain possession and must then make arrangements to address the other spouse’s share of home equity.
In that latter situation, spouses have needs that directly conflict with one another. The spouse getting bought out wants to set the home value as high as possible so that their share of equity is high as well. The spouse keeping the home wants to keep the home value low to minimize the equity they must withdraw while refinancing or limit the other concessions they must make during property division. Who determines the value that is used when negotiating solutions for the home in a divorce?
Professional insight may be necessary
Unless the spouses purchased their home relatively recently, the sale price for the property is unlikely to reflect the current fair market value of the home. Frequently, spouses turn to appraisers to assess the property and establish an appropriate value.
In high-conflict cases where one spouse questions the accuracy or neutrality of an appraisal report, each spouse might need to hire their own appraiser. They might then agree to split the difference between the two values.
If spouses cannot agree on how much the home is worth, then they may require a judge’s review of the situation. A family law judge hearing a contested property division case can settle disputes on both the valuation and disposition of the home and other marital property.
Divorcing people who are anticipating a complex or contested property division process should get experienced legal guidance as early as possible. This can help them protect their interests and secure fair divorce terms.