When a married couple is contemplating a divorce, if there is jointly owned property, an appraisal will almost always be necessary to determine how to divide the assets fairly and equitably when the divorce is final. There are professional appraisers to evaluate property, as well as any and all other types of possessions the couple may own.
The law(s) regarding division of property and assets differs from state to state. Many people believe that all of the assets will be equally divided between spouses in a divorce process, but in fact, this is not necessarily the case. There can be many mitigating circumstances that affect the actual asset division. Some circumstances to be considered include:
Was the property owned by one spouse before the marriage?
Was the property a gift or inheritance to one spouse during the marriage?
Was the property purchased with pre-nuptial funds that one partner brought into the marriage?
Was a pre-nuptial agreement signed prior to the marriage?
How was title taken to the property in question?
Has the asset increased in value since purchased? Was the increase due to an equal investment of time and funds by both spouses?
Is the asset part of a business owned and operated outside the marriage?
Was the business in operation prior to the marriage?
It is critical to seek legal counsel prior to ordering an appraisal. While some states use the separation date as the appropriate date to determine values for asset division, other states may deem any valuation is premature until closer to the final decree.
Partners should utilize the services of a certified or licensed appraiser. When real estate type of property is to be valued, it is wise to utilize the services of a local appraiser who is familiar with local valuations, assessments, etc. Your attorney or CPA can usually suggest a good appraiser for you.
If there are investment properties and/or commercial real estate involved, you may need to hire more than one appraiser. For assets other than real estate, it is very likely that the services of at least one more appraiser will be required. For example, few appraisers are certified to appraise antiques, artwork, or jewelry.
Surprisingly, it is common for non real estate types of assets to exceed the assessed value of real property, and certainly since the more recent drop in housing values, the amount of equity in real property. When you start to consider cars, boats, motorcycles, bicycles, jet skies, snow equipment, business equipment, cameras, motor homes, china, silver, collectibles, jewelry, pensions, and retirement plans, you can see that property division is essential, especially if the marriage has been of long duration.
In 2008, the Uniform Standards of Professional Appraisal Practice (USPAP) formally went into effect across the United States. The USPAP established a uniform set of rules and procedures regarding education, testing, licensing and certification for all property appraisers in the country. The USPAP sets the standards for real estate, personal property, business and mass appraisal. However, licenses and certifications are still issued by each state.
Before you hire any appraiser to value any of your property, be sure to ask to see a copy of the state issued license, and a copy of the E & O insurance, which protects you in case of errors.
Market Appraisal Group has many years experience in providing real estate property valuation services for estate planning, PMI removal, and divorce and settlement disputes in San Francisco and surrounding area. This article powered by SEO 2.0 Services
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