How to value the marital residence in divorce

For many couples in Wisconsin, the home is the largest asset in the marital estate. If a couple divorces and one spouse wants to keep the home after the divorce, an accurate valuation of the property becomes a crucial component of property division. If the home is valued too high, spouses keeping the homes will owe more equity to the other spouse than what would be paid if the home is valued accurately. If the homes are valued too low, the spouses who are vacating the home will not get all the equity to which they are entitled.

There are three ways to value a home in the event of divorce. The first and most reliable method is to hire a licensed appraiser. This is the most expensive method. The cost of an appraisal may go up to several hundred dollars depending on the market. However, the value of an accurate appraisal easily justifies the additional cost.

The second method to value the home is through a comparative market analysis. It involves comparing the home to homes that have been sold in the same area. A comparative market analysis can be done by a realtor for little or no cost. However, it is less accurate than an appraisal because it does not take the home’s specific condition into account.

The third method is for the parties to do their own research by using websites designed for the purpose of valuing homes. This is the least accurate and most unreliable method. If both parties are not in agreement, the valuation may be given little weight by the court. Experienced family law attorneys in Wisconsin may advise as to the specific options available for valuation of the home in your case to ensure an equitable property division.

Source: Huffington Post, “Three Ways To Value Your Home In A Divorce,” Joseph E. Cordell, March 1, 2013