Divorce Appraisals: What You Need to Know
An independent residential appraisal can help establish a property’s market value for divorce or equitable distribution. The value applies to a specified effective date—the date the opinion of value applies to—which may be current or historical.
Understanding the Divorce Appraisal Process
A residential appraisal developed for a divorce or equitable distribution matter considers the property characteristics, relevant market data, and other information applicable to the assignment. The assignment identifies the intended use—what the appraisal will be used for—and the intended users—the client and any other people or organizations identified by the appraiser as users of the appraisal. Receiving a copy does not automatically make someone an intended user. These requirements and the effective date help determine the scope of work: the type and extent of inspection, research, and analysis needed.
Why a Residential Appraisal May Be Needed
An independent appraisal can provide a supported opinion of market value when the value of residential real estate must be considered as part of a divorce or equitable distribution matter. Depending on the circumstances of the assignment, the appraisal may develop an opinion of current market value or a retrospective opinion of value as of a prior effective date.
The appraisal may be used by property owners, attorneys, mediators, or other intended users in connection with settlement discussions, mediation, litigation, or other legal proceedings.
Appraisal vs. Comparative Market Analysis
A real estate agent or broker may prepare a comparative market analysis (CMA) to assist with a potential listing or pricing decision. A residential appraisal serves a different purpose and is developed by a state-licensed or state-certified appraiser in accordance with applicable appraisal standards and the requirements of the assignment.
For divorce and equitable distribution matters, the appropriate valuation service depends on the intended use of the valuation and the specific requirements of the assignment.
What to Expect During a Divorce Appraisal
Assignment Information
The appraiser identifies the property, intended use, intended user(s), applicable effective date, and other relevant assignment requirements.
Property Inspection
When an interior and exterior inspection is part of the scope of work, the appraiser observes and documents relevant physical characteristics of the property, including its size, condition, quality, features, and improvements.
Market Research and Analysis
The appraiser researches relevant market data and analyzes comparable properties and other information applicable to the assignment.
Appraisal Report
The completed appraisal report communicates the appraiser's analysis and opinion of value, together with the information necessary to understand the assignment and conclusions.
Disagreements on Value
The parties may have different opinions regarding the value of the property. An independent appraisal provides an opinion of value developed through analysis of relevant property characteristics, market data, and other information applicable to the assignment.
The Appraiser's Role
The residential appraiser's role is to develop an independent and impartial opinion of value based on the requirements of the assignment. The appraiser does not represent the interests of either party or determine how property should be divided.
Attorneys and other professionals may rely on appraisal information as part of a broader divorce or equitable distribution matter, but legal determinations and settlement decisions remain outside the appraiser's role.
Residential Appraisals for Divorce and Equitable Distribution
IRV Appraisers provides residential appraisals for divorce and equitable distribution throughout Philadelphia and the surrounding counties. Contact us with the property address, the date for which a value is needed, and any relevant deadlines.