Going through a divorce is challenging no matter the circumstances, but the situation can be even more complex in a high net-worth divorce since you likely have many more assets to divide.
The most challenging of these assets are real estate properties. Here's what you should know about how real estate is valued in a high asset divorce:
Three Options for Valuing Real Estate in a High Asset Divorce
You have three options for valuing real estate in a high asset divorce:
- Real estate appraisal
- Comparative market analysis
- Self-appraisal
Real Estate Appraisal
In this case, a licensed appraiser will determine the value of the property. Having your home's value measured in this way will ensure that it is wholly fulfilled and correct, but it can get expensive. It may cost several hundred dollars to have your property appraised.
However, a real estate appraisal can ultimately save you money, and you can be sure the value is correct.
Comparative Market Analysis
Comparative market analysis is less expensive than a real estate appraisal and can be conducted by a realtor. In this case, you will learn the fair market value of your property by comparing it to other recently sold or for-sale properties nearby.
This option isn't quite as accurate as a real estate appraisal because it fails to account for your property's particular details. However, this method provides an up-to-date standard value that can assist with negotiations.
Self-Appraisal
A self-appraisal may be appropriate if you and your partner mostly agree on the value of the property.
Self-appraisals don't cost anything and can be done in the comfort of your own home. You have to conduct an internet search to assess the value of your property.
However, it's essential to keep in mind that the court doesn't consider this method an accurate home valuation. Essentially, if there is a dispute regarding the self-appraisal result, the court will probably order you to use a comparative analysis or real estate appraisal.
We're Here to Help
High-asset divorces can be tricky, which is why it's not a good idea to try to handle such a situation on your own. If you are considering or in the process of getting a divorce and you have high-value assets, it's in your best interest to consult one of our experienced attorneys right away.
Schedule a consultation with our Colorado Springs lawyers today by calling us at (719) 626-8530.