When married couples have numerous high-value shared assets, managing the property division process can become more complicated than usual. The home where they live may be the source of many disagreements.
Even after settling possession matters, spouses may still face disputes regarding the division of their accumulated equity. Finding a fair solution for equity requires that spouses first agree on how much equity they have in the home.
What happens when spouses have vastly different ideas of what their home is worth?
An appraisal might be necessary
Frequently, the spouse retaining the home might set a lower estimated value for the marital home than the spouse expecting a buyout. When spouses can’t seem to settle on a fair market value for their home, they may need the insight of a licensed appraisal.
Appraisers can look at the market and the condition of the property to roughly estimate what the home is worth. However, real estate professionals sometimes let the needs of their clients influence their professional opinions.
One spouse might question whether the appraisal is unreasonably low or high. In such cases, each spouse might obtain their own appraisal. If both appraisals are relatively close in value, that may resolve the matter.
If the appraisals are significantly different, then the matter may require the attention of a judge. A family law judge could review both appraisals and other evidence to ultimately determine what fair market value to apply when addressing the home and other assets during the property division process.
In scenarios where spouses struggle to agree on solutions for their most valuable resources, professional insight could prove invaluable. Discussing property division priorities with an attorney can help spouses navigate contentious economic matters with the potential to impact the outcome of a pending high-asset divorce.
