When an appraisal is needed for property division

When an appraisal is needed for property division

On Behalf of | Apr 1, 2024 | Divorce

Michigan is an equitable distribution state, which means that you might be entitled to the family home in a divorce. If the house is sold, you might receive a portion of the proceeds of that sale. However, you won’t know how much to expect from that sale unless you and your spouse can agree on how much the property should be listed for.

Having the property appraised

An appraisal is a formal method of valuing a home for the purposes of selling it. The appraiser will base their decision on a number of factors such as the home’s age, condition and location. Other factors might be taken into account such as the presence of a finished basement or the fact that it was once the home of a famous historical figure. Although the appraiser’s findings will carry weight with the court, you may want to get a second opinion before accepting them.

How to use an appraisal

An appraisal provides you with two pieces of information prior to creating a divorce settlement. First, it tells you how much the home is worth so that you can list it properly. Often, homes that are priced too high have trouble selling while pricing a property too low may cause you to lose money. Second, it tells you how much equity is in the home, which may help you determine if you should sell the home now or wait until conditions change.

The terms of a settlement will depend on the quality of the evidence presented during negotiations. Obtaining an appraisal can make it easier to determine whether you want to potentially keep the house or sell it. It may also help determine what assets you might be willing to give up in exchange for the home.