One spouse keeps the house
A buyout is only as fair as the value it starts from. An independent appraisal gives both sides the same figure to calculate the other spouse's share against.
When a marriage ends, the house is often the largest shared asset, and dividing it fairly starts with a number both sides can trust. An independent appraisal gives spouses, attorneys and mediators a documented market value that doesn't come from either side's real estate agent.
Many people assume the house is valued as of the day they separated. In California that is usually not the rule. Under Family Code section 2552, community property is generally valued as near as practicable to the time of trial.
The court can depart from that. On a motion with 30 days' notice, it may, for good cause, value an asset as of a date after separation and before trial. Attorneys also sometimes want a value as of an earlier date for their own analysis.
An appraisal can be written as of any date the parties or their attorneys specify, including a date in the past. If you are not sure which date you need, ask your attorney before ordering, because it changes the research behind the report.
The same report can serve several of these at once.
A buyout is only as fair as the value it starts from. An independent appraisal gives both sides the same figure to calculate the other spouse's share against.
If the home will be sold, a documented value helps both parties agree on a realistic list price rather than arguing over agents' estimates.
Mediators and collaborative-divorce teams work faster when the largest asset has a neutral, written value both parties have seen.
If the other side's figure looks wrong to you, an independent appraisal is the usual way to test it.
If one spouse will refinance to take over the loan, the new lender will order its own appraisal. An independent value beforehand helps you plan the buyout before you apply.
Where part of the home's value may be separate property, attorneys sometimes need values as of more than one date. List every date you need when you request a quote.
Many couples agree to share a single neutral appraiser. It usually costs less, and it avoids a contest between two reports.
Either way, the appraisal is prepared independently. Appraisal standards prohibit accepting an assignment where the fee depends on reaching a particular value, so the fee pays for the work, not for a number. The report states the value the market evidence supports, whoever ordered it.
Worth sorting out before the inspection:
Handled personally from start to finish, by the same appraiser you first talk to.
Call or send a quote request with the property address, the date or dates the value is needed as of, and who the report should go to.
Most divorce appraisals of a single-family home or condo run $400 to $500. Past-date and multiple-date assignments are quoted individually, and you get the exact figure before any work starts.
The inspection is arranged directly with whoever lives in the home, at a time agreed in advance.
The report is typically delivered 3 to 7 business days after the inspection, documented well enough to hand to attorneys, a mediator, or the other party.
Send the property address and the date your attorney needs, or call to talk through the situation first.
Valley-Wide Appraisal Services provides independent real estate appraisal services only. Daniel R. Nelson is a licensed residential real estate appraiser, and is not an attorney, mediator, or financial advisor. Nothing on this page is legal advice, and it should not be relied on as a substitute for advice from your own family law attorney.
Valley-Wide Appraisal Services does not represent either party, does not advise on how property should be divided, and does not guarantee any particular valuation outcome. How a value is used or accepted rests with the parties, their attorneys, and the court.
The California rules described here are general. Confirm which valuation date and procedures apply to your case with your attorney.