When considering divorce, a couple will often seek to determine their home’s value. A lot of the time this can be their most valuable asset. In a divorce proceeding, the home's equity is usually split, but it does not have to be equally. Also, one party may buy-out the other, so determining the home's value is key to a good financial settlement.
As local Georgia divorce lawyers, we know that getting to a proper valuation for a house in a divorce case can be a complex process, and it often depends on various factors. Here are some steps you can consider when a house or property needs to be valued:
- Appraisal:
- Hire a professional real estate appraiser to assess the fair market value of the property. This is often a crucial step as it provides an unbiased estimate of the property's worth.
- Comparative Market Analysis (CMA):
- Your real estate agent can provide a Comparative Market Analysis, which is a report that analyzes the prices of similar properties in the area. This can give you an idea of what similar houses are selling for.
- Joint Appraisal:
- Both parties may agree on a single appraiser to assess the property. This can be a more cost-effective and less adversarial option, but it requires cooperation between the spouses.
- Tax Assessment:
- Check the property tax assessment value, although this is not always an accurate representation of the market value. Some areas reassess property values infrequently.
- Market Conditions:
- Consider the current real estate market conditions. Is it a buyer's or seller's market? This can influence the property's value.
- Outstanding Mortgage and Liens:
- Subtract any outstanding mortgage balance or liens against the property from the estimated value. This will give you the equity in the home.
- Online Valuation Tools: There are online tools and websites that offer automated property valuations. Keep in mind that these estimates may not be as accurate as a professional appraisal or a real estate agent's analysis.
- Local Property Tax Assessment: Check the property tax assessment for an estimate of the government's valuation of your property. However, this may not reflect the current market value.
- Recent Sales in Your Area: Look at recent sales of similar properties in your neighborhood to get an idea of the current market trends.
- Consider Special Factors:
If there are special features or issues with the property (e.g., needed repairs, renovations, or a unique location), these should be taken into account when determining value.
- Mediation or Legal Assistance:
In some cases, couples may choose mediation to come to an agreement on the property value. Legal assistance may be necessary to ensure both parties are treated fairly and that all legal requirements are met.
- Agreeing on a Value:
If possible, try to reach an agreement with your spouse on the value of the house. This can save time, money, and emotional stress.
Remember that the goal is to arrive at a fair and equitable value that both parties can agree on. If you and your spouse are unable to reach an agreement, the court may make the final determination based on the evidence presented. Consulting with a family law attorney experienced in divorce cases can provide you with guidance tailored to your specific situation.
When you need expert local divorce counsel, we are here for you!