From the SUV to the pets you share, there are plenty of assets to divide during the divorce process. However, for most couples, the largest joint asset is their marital home. To ensure each spouse gets a fair cut, you’ll need to have this piece of real estate appraised by a professional. If you’ve never had an appraisal before or need a refresher, use the following guide to learn what to expect. 

What Is an Appraisal?

Essentially, an appraisal serves to define the fair market value of the house. To come to a figure, property appraisers will review it in person, as well as look over any pertinent documents. The fair market value must be an amount that both a buyer and seller would agree upon without pressure. Unlike a tax assessment, a divorce appraisal considers similar properties that have recently sold to realize the value of a home at a specific date. 

Why Would You Need to Seek One During a Divorce?

If you’re splitting up with your spouse, you’ll likely no longer want to live in your marital home. If both of you agree on this, you might want to sell the property and divide up the profits. Therefore, the appraiser will determine how much each individual will make.

On the other hand, if you or your spouse wants to remain in the property, you can buy the other out—meaning, you pay for their share and keep the property for yourself. In that case, one spouse will want the appraisal to render the lowest possible amount, while the other will hope for a large price tag. Due to the climate of most divorce cases, it’s crucial to have a neutral party determine the true value. Once they’re finished, each spouse will review the appraisal, so they can retain privacy from each other. 

Although some divorcing couples opt to have a real estate agent complete a competitive market analysis, this won’t render the same results as an appraisal. The agent will only come to their calculation based on current trends in the market, while an appraiser will carry out meticulous legal and financial research to build their report.

If you’re preparing for the divorce process, reach out to Concept Appraisal Services. They have over 15 years of experience helping property owners in the Denver Metro area of Colorado determine the value of their investments. Owner and operator Connie Jo Esbenson has completed over 30,000 appraisals, so you can trust her to handle your needs. For more information on her services, visit the website, or call (303) 506-6254 to request a free quote.