One of the most contentious aspects of a high-asset divorce is property value. Property value is essential to negotiating for a fair outcome in your divorce case. Real estate appraisers serve a critical function in the property valuation process. Here is what you need to know about this critical legal issue.
Why the Value of Real Estate Matters During a Divorce in Colorado
Your marital home and other real property could be one of the most valuable assets in your portfolio. Knowing how much your real estate is worth is essential to your divorce case. Other aspects of your divorce can be affected based on the value of your property, including spousal support and the division of other marital assets and debts.
Colorado is an equitable distribution state, so judges can determine how to divide property in a way they determine fair. You won’t necessarily wind up with a 50/50 split. However, judges may try to determine the estimated value of your property and gravitate toward a similar value in this property.
If your real property is valued too high or too low, this can affect whether your divorce settlement is fair. Additionally, if you choose to buy out your spouse or vice versa, having a formal property appraisal is necessary to know how much the buy-out is worth.
Legal Options for Dividing Real Property During Divorce
Divorcing couples have several options for dividing their real property. Some of the most common include:
- The spouses sell the house and split the proceeds.
- The court can order the house to be sold and how the proceeds will be split.
- One spouse can keep the property while the other spouse sells their share.
- The court can award different pieces of real property to each spouse.
- One spouse forfeits their ownership interest in the property in exchange for other property.
- The court can award real property to one spouse and award other property to the other spouse.
Whether you want to keep real property, exchange other assets for the real property, or sell your interest in the property to your spouse, you will need to know what the property is actually worth.
The Role of a Property Appraiser During Divorce
Property appraisers conduct an in-depth analysis of your real property that goes far beyond estimating its value by considering comparable sales. Appraisers are particularly important when the property is valuable, as you want to ensure a fair outcome in your case. An experienced appraiser can consider the square footage, renovations, needed repairs, any encumbrances, historical information, and the current condition of the property to determine an accurate value of the property.
Other Legal Options to Value Property During Divorce
Using a professional appraiser is the most accurate and reliable way to determine the price of property. You and your spouse could agree to use the value the appraiser determines, or you could each hire your own appraiser. If you and your spouse cannot agree on a value, the judge can hear testimony and determine the value based on this and other evidence.
Alternatively, you and your spouse can agree to the value on your own without using a professional appraisal, a real estate agent’s valuation that relies on comparative sales of similar properties, or other methods you both deem fair. If you don’t initially agree on a value, you could participate in negotiations or mediation to eventually reach an agreement. Using a professional property appraiser is just one option for valuing your property.
Contact Stahly Miner LLC for a Confidential Consultation to Discuss Your Case
The experienced and distinguished legal team at Stahly Miner LLC can guide you through the process of properly identifying, valuing, and dividing your marital property. We want to help you achieve a fair property settlement. Call us at (303) 797-2900 for a no-obligation consultation.