Getting an accurate valuation of the family home and other real estate is often required when going through divorce and splitting assets. Understanding the process and requirements for property valuations during divorce can help lead to fair outcomes.
Why Valuations Matter for Divorce
Valuing the marital home, investment properties, vacant land and other real estate holdings provides documentation of their worth. This allows these significant assets to be divided equitably during settlement.
Valuations give an impartial estimate, since relying on guesses from one spouse could lead to conflicts. Professional valuers use recent comparable sales to derive market values. This arms both parties with objective information when negotiating who keeps which properties.
When to Obtain Valuations
Start the valuation process early once divorce is initiated. Property values can fluctuate, so current appraisals when first separating give the most accurate picture. Updated reports may be needed closer to finalising the settlement if the process drags on.
Values are usually determined before any other financial split like pensions, savings or spousal maintenance. The worth of the real estate impacts how these other assets get divided up fairly.
Requirements for Divorce Valuations
Valuers need access to inspect the property from both land and internal rooms. They will take measurements, photos and notes on condition. Provide any blueprints, permits or renovations done.
Let the valuers know the purpose is for marital dissolution. They will prepare a report following standard divorce valuation guidelines. Often a shorter report focuses just on property value conclusions rather than lending worth.
Redacted versions removing sensitive financial details can be issued if needed. These provide just the final values for negotiation.
How to Split Valued Assets
Once valuations are complete, the houses and land can be split between spouses. One may keep the marital home in return for the other getting investment condos. Or the properties may be sold and proceeds divided.
The settlement memorandum stipulates who gets each asset and how values offset. This provides closure by detailing the division of all major marital properties.
Obtaining professional valuations early in divorce ensures real estate holdings are divided fairly during what is often an emotional process. Relying on objective appraisals leads to equitable outcomes both parties can accept.
