Valuing Property in a Divorce: What to Know

Divorce is an emotional and challenging time, often marked by difficult decisions and complex negotiations. One of the most significant assets to address is your family home or other real estate properties and investments.

These assets carry not only significant financial value but also deep emotional ties, making the valuation process a critical—and often contentious—aspect of divorce proceedings.

In this moment of transition, accurately valuing your real estate becomes more than just numbers or assets, but a symbol of clarity and fairness. If you’re going through a legal separation, let’s look at how homes and other properties or real estate assets are split during a divorce and the role of accurate valuations.

How to Split a House in Divorce

There are generally three main options when splitting a property in a divorce — split the proceeds, one spouse gets the house, or you maintain joint ownership. Each option comes with various pros and cons for all parties and legal teams to consider.

Please note that each situation is different and the role of a fair and accurate evaluation is specific to the circumstance. It’s best to work with legal, real estate, and lending professionals to come up with the best solution for you and your family.

Sell the Home and Split the Proceeds

In this situation, the couple would sell the house. After the sale is finalized and debts, taxes, and real estate fees are paid, all profits and home equity are divided fairly.

This is often the simplest option, especially if you’re looking for a fresh start and to minimize debt.

However, it’s important to note that the housing market can fluctuate, impacting the profits and timeframe for the final split. It’s also not uncommon for selling to spark disagreements over listing price, repairs and maintenance, closing dates, open houses and more between couples going through a separation.

One Spouse Stays in the Home

In this case, one spouse wants to stay in the home and can buy the other spouse out and refinance the mortgage on their own moving forward.

Depending on the situation, this can be an ideal option when the couple wants to minimize disruption for their kids during an otherwise tumultuous time or when there are strong community or neighborhood ties.

In many cases, affordability becomes a challenge here if the spouse can’t meet the lending requirements without dual incomes.

Maintain Joint Ownership

With this approach, both parties remain owners of the property and share the physical and financial responsibilities of home ownership. This is often a temporary arrangement while the legal situation stabilizes or the real estate market improves.

While this split can allow couples time to negotiate and minimize risk financial loss during a difficult economic time, it does provide a number of challenges. Continuing to split the property despite a separation opens the door for ongoing conflict over selling, renting, or making improvements.

Why Accurate Property Valuations Are Important During a Divorce

No matter which approach you choose to divide your home, business, or other property investments during a divorce, an accurate valuation is key. A clear understanding of how much your real estate is worth is important to both parties during this stressful time.

Fair Division of Assets

In most cases, the goal of a divorce settlement is a fair division of marital assets. Real estate is often among a couple’s largest shared assets, so an accurate valuation ensures that all parties involved get their rightful share.

Preventing Disputes

There’s no doubt that emotions often run high during a divorce, so anything to minimize the tension is helpful. Clear and accurate property valuations leave little room for debate, so they can help you minimize ongoing disagreements or misunderstandings throughout the process.

Unbiased Perspective

You’ve built a life and family in your home, which means emotions almost always run deep. Professional valuations offer an unbiased perspective, enabling more informed decisions as you navigate the division of assets.

Financial Planning

Understanding the true value of your home or other real estate helps you and your current spouse plan for your financial futures. As one of the main financial and investments for many couples, these valuations can help with budgeting, asset allocation, retirement planning, and debt management as you adjust to your new financial circumstances.

Legal Requirements

In many cases, courts require detailed real estate valuation reports to make informed decisions about property division. In some cases, these property values can influence spousal or child support determinations.

How Akrivis Can Help

If you need a home appraisal in a divorce settlement, we’re here to help. Akrivis can provide fast, and accurate hybrid appraisal reports and property valuations in 5 business days or less. From residential to commercial properties, our valuation experts bring years of real estate knowledge and expertise to our customers nationwide.

We understand that going through a divorce is a sensitive time, which is why we operate with efficiency, compassion, and empathy to make the process as smooth and fair as possible. In fact, transparency and integrity are among the core values we bring to the table every day.

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