The Valuation of Real Estate in a High Asset Texas Divorce

 Posted on July 09,2018 in Complex Property Litigation

Couples with significant or diverse assets are often forced to grapple with legal issues that don’t apply in most divorce cases. This can make the divorce process not only more complicated, but also more acrimonious, especially when it comes to valuing the family home, so if you are thinking about filing for divorce and have substantial real estate holdings, you should consider contacting an experienced Round Rock high asset divorce attorney who can ensure that your property is appraised by a qualified expert.

Comparable Sales

For a marital estate to be fairly divided, the value of a couple’s property must be accurately assessed. When it comes to real estate, this usually means that the parties will need to hire an appraiser who can estimate value based on current market conditions and recent sales of comparable properties in the area. When dealing with especially valuable properties, the appraisal process also often includes consideration of additional features of the property in question, which could make it more valuable than other similar properties. Unfortunately, valuing the unique features of a property can be a subjective process. For example, one appraiser may include the value of a swimming pool or a four car garage, but fail to take note of marble countertops or custom kitchen appliances during the appraisal process. For this reason, most couples going through a high asset divorce are encouraged to obtain multiple appraisals to ensure that an accurate number is reached.

Calculating the fair market value of a property is only one step in the valuation process, as couples will also need to take the mortgage balance into consideration before reaching a consensus on equity. Similarly, the parties will need to keep tax considerations in mind when dividing property, as homes that have appreciated in value since they were purchased are often subject to a capital gains tax, which can affect the overall value of the property.

When to Obtain a Valuation

When an appraisal is conducted can also have a significant influence on the value of the property, as real estate market conditions are ever-fluctuating. In many states, valuation is calculated based on the date that the couple filed for divorce. In Texas, however, valuation of marital assets is based on the market conditions that existed at the time of separation. This can have an important impact on the value of a home, so if your spouse is using the value from an appraisal that occurred at a different time, it is important to speak with an attorney who can ensure that the correct date is used for the appraisal.

Contact Our High Asset Divorce Legal Team Today

For a consultation with an experienced Georgetown high asset divorce lawyer at Powers Kerr & Rashidi, PLLC about a real estate appraisal matter, contact us today. We can begin assisting you immediately with your case.

Sources:

https://www.huffingtonpost.com/joseph-e-cordell/three-ways-to-value-your-_b_2726041.html

https://www.forbes.com/sites/jefflanders/2011/09/28/why-divorcing-women-need-to-pay-careful-attention-to-the-date-of-separation/