Divorce involves many complicated decisions. Couples have to decide what happens with their property and how to continue meeting their joint financial obligations. If they have minor children, they must discuss how they intend to share parental rights and responsibilities. There may also be a need for ongoing financial support.
Sometimes, spouses employ an overly-simplistic approach to property division. People may accept certain terms that they do not realize may put them at a marked disadvantage later. They may undervalue assets because they don’t want to keep them.
The bigger an asset is, the more important it becomes to understand the current fair market value of that asset. Failing to reevaluate the overall worth of a marital home is one of the most common and costly mistakes people make when negotiating property division matters during divorce.
The value of a home may have changed dramatically
Real estate prices fluctuate over time due to a variety of different factors. That being said, real estate prices generally tend to trend upward over time. The longer that the spouses have remained in the house, the greater the likelihood that the price they paid for the property is not an accurate reflection of what it is currently worth on the open market.
Particularly when property owners have updated, renovated or expanded the property, they may need the assistance of an appraiser to determine what the home is currently worth. In high-conflict cases, sometimes each spouse obtains their own appraisal and then the spouses split the difference between the two values set. Establishing what the home is likely worth on the open market is of the utmost importance for a fair and reasonable property division outcome.
If people make too many concessions when addressing their most valuable assets, they may end up receiving less marital property than they truly deserve. Accurately establishing the value of the home allows for more reasonable negotiations when deciding who keeps the home and how to offset its value with other assets or marital debts.
Taking the time to carefully address marital resources when preparing for property division negotiations can help people preserve their assets and interests in their marital estate. A home is one of several assets that spouses may need professional assistance valuing during divorce proceedings.
