Couples preparing for high-asset divorces typically have to find ways to divide their property. Reaching a fair settlement typically requires an understanding of what different assets are worth. Spouses can arrange to sell assets and split their value. They can also use the value of one asset to counter decisions related to other shared assets.
Real estate holdings are among the most valuable assets spouses may share and are a common source of conflict during property division negotiations. Spouses may find themselves disagreeing on what their property is actually worth. Who ultimately determines the value of a home?
The spouses can reach an agreement
Many couples can work together to settle their disagreements about property division. They might hire an appraiser or consult with a trusted real estate agent to set a fair market value for their home. Provided that they both agree that the value proposed is appropriate, they can then work cooperatively to address their shared equity in a reasonable manner.
Judges can settle disagreements
Sometimes, spouses disagree about the value of the home. The spouse hoping to stay in the home might underestimate its value, while the spouse expecting to get bought out may overestimate what it is worth. In some cases, they might even both obtain appraisals with significantly different fair market values.
In contested divorce scenarios, family law judges have to review the information submitted on financial disclosures and then determine what fair market value to acknowledge. They also have the authority to decide who retains the property and how to compensate the other spouse for their interest in the accumulated home equity.
Understanding the different solutions available for contentious property division matters is helpful when preparing for a high-asset divorce. Disagreements about home value are common, and spouses typically either need to reach an agreement with one another or prepare for litigation.