When you own a home and are going through a divorce, figuring out what happens to the property can be one of the bigger financial decisions you face. Whether you plan to sell the home or one of you hopes to stay, you first need a clear understanding of what the property is worth.
That isn’t always as straightforward as it sounds. You may have an online estimate in mind, while your spouse is looking at what a neighbor’s home recently sold for. When those numbers don’t match, agreeing on a value adds another source of stress to the process. A neutral appraisal gives both of you an independent, well-supported value to work from.
An Independent Opinion of Your Home’s Value
A neutral third-party appraiser doesn’t represent you or your spouse. The appraiser’s role is to provide an independent opinion of the property’s market value based on the property itself, relevant market data, and comparable sales.
Having a professional valuation takes some of the guesswork out of conversations about the home. Instead of each person relying on a different estimate or opinion, you have the same information to reference as you consider what comes next.
This can be particularly important if one of you wants to remain in the home and buy out the other’s interest. If you plan to sell the property, an appraisal provides a clearer understanding of its value as part of the overall division of assets.
Why an Online Estimate May Not Be Enough
It’s natural to look up your home’s value online. Those estimates can provide a general idea of value, but they don’t always tell the full story.
An automated estimate may not fully account for your home’s condition, improvements, quality, location, or other characteristics that affect its value. It also doesn’t involve an appraiser evaluating the property and analyzing the most relevant market data.
Depending on the assignment, an appraiser may consider your home’s size, age, condition, improvements, site characteristics, location, and other factors that influence value. The appraiser also analyzes comparable properties and recent sales in the market. The final appraisal report provides a supported opinion of value and explains how that conclusion was reached.
Giving Everyone a Clearer Starting Point
An appraisal doesn’t determine who gets the house or how your assets should be divided. Those decisions remain between you, your spouse, and the professionals helping you through the divorce. What an appraisal can do is provide a more objective starting point for those conversations.
Your attorney may use the appraisal when discussing a property settlement. A mediator may reference it as both sides work through their options. If the matter goes to court, a professionally prepared appraisal provides support for discussions involving the property’s value.
For attorneys and mediators, having a well-supported valuation keeps conversations focused on the property and the available market data rather than competing opinions about what the home might be worth.
When Should You Get an Appraisal?
There isn’t one right time to order an appraisal during a divorce. In some cases, getting one earlier in the process gives you a better understanding of the value of a major asset before settlement discussions get too far along.
You may want to consider an appraisal when one spouse plans to keep the home, when you’re preparing to sell, or when you and your spouse have different ideas about what the property is worth. Your attorney or mediator may recommend an appraisal based on your particular situation.
Divorce involves many decisions and an appraisal won’t make all of them for you. But when real estate is part of the equation, having a reliable, independent opinion of value helps remove some of the uncertainty.
A neutral appraisal gives you, your spouse, and the professionals working with you a clearer understanding of the property’s value, so you can make decisions based on solid information and move forward.