When you are getting a divorce in New Jersey, one of the top priorities is the equitable distribution of assets. The house comes into question during this time. Do you sell it? Keep it? Refinance the property then split the equity? No matter what you decide to do with the house, the first thing that must me done is establishing the property value. To get the property value, you will need to contact a licensed real estate appraiser who can work alongside you and your divorce attorney.
Here is everything you need to know about divorce appraisal, including reasons why you should hire an appraiser or two during your divorce.
Key Takeaways
- Establishing the property value is a crucial step in the divorce process, especially regarding asset distribution.
- A divorce appraisal, akin to a regular home appraisal, involves hiring a certified real estate appraiser to assess the property’s value, aiding in negotiations or Court proceedings.
- Beyond the primary residence, various properties and assets, including businesses, personal belongings, and financial assets, are considered in the appraisal process.
- While one appraiser typically suffices, hiring two can provide differing perspectives, potentially aiding in fair property division, especially in cases of disagreement.
What is a Divorce Appraisal?
A divorce appraisal is much like a regular home appraisal but conducted during divorce proceedings. In the State of New Jersey, when you decide to end your marriage, the assets must be divided between you and your spouse. To ensure a fair division, it’s essential to determine the current market value of your assets—mainly your home.
A divorce appraisal involves hiring a certified real estate appraiser who assesses the property’s value based on various factors such as its location, size, condition, comparable sales in the area, and other relevant market trends. The appraiser provides a comprehensive report detailing his or her findings, which can then be used by the divorcing parties and their attorneys to negotiate a fair settlement or present in Court if the division of assets becomes a contested issue.
There are niche appraisers who work primarily with divorcing couples; however, most appraisers will be empathetic and respectful of the situation.
What Types of Property are Included in a Divorce Appraisal?
What Types of Property are Included in a Divorce Appraisal?
Generally, when two people divorce it is not just the home that needs to be considered for equitable distribution. There are many types of properties and assets that a divorce appraiser will consider, including:
- Primary residence.
- Secondary residences and vacation homes.
- Investment properties and undeveloped land.
- Businesses, including sole proprietorships, corporations, and partnerships.
- Personal property, such as vehicles, furniture, art and collectibles, and high value jewelery.
- Financial assets, including bank accounts, life insurance policies, retirement accounts, and investment accounts.
- Club memberships.
- Intellectual property, including trademarks, copyrights, and any other intellectual property developed during the marriage.
Do You Need to Hire Two Appraisers During a Divorce?
In most cases a single appraiser will suffice, but it is important that both parties agree to the appraiser. In the event that one of you does not like or trust the appraiser, it may benefit you to hire two. Having two appraisals can also benefit the divorce proceedings if you and your ex-spouse are within disagreement. Two appraisals means two differing perspectives that can be assessed by the judge.
Since appraisers do the research on the value you of the property and assets and also utilize their own knowledge of market trends, it is not uncommon for two appraisers to come up with different numbers. In fact, having two sets of numbers to compare can make the division of property far more fair, especially when one appraiser under- or over-values one or more assets.
In the end, however, it will come down to the discussion between you, your ex-spouse, your divorce attorneys and, if necessary, a judge.
Preparing for a Divorce Appraisal
Hiring an appraiser or two means preparing for his or her arrival and ensuring he or she can do the job to completion. To help you prepare for a divorce appraisal, here are some things that must be done:
- Gather documentation related to your properties and assets. You will need deeds, tiles, mortgage statements, bank statements, tax bills, and operational documents.
- Familiarize with the details of the properties, accounts, and businesses in your possession. You will want to know the number of rooms, square footage, and any other details that may impact the value of your home and other properties.
- Prepare what you can. Clean and tidy up what you can, if applicable. For example, if you are looking to have jewelry appraised, put it somewhere that it can be seen in its entirety.
Who Pays for the Appraisal?
The cost of hiring an appraiser is typically split between the two involved parties. Keep in mind that if you opt to hire a second, that doubles the cost. Speaking of the cost, that will vary depending on the appraiser or appraisers you hire. Some real estate appraisers, particularly those with experience, will charge several hundred dollars for their services. If complex businesses or large collections are involved, you may need to spend several thousand.
Contact a Divorce Attorney in New Jersey Today to Learn More
A divorce appraisal, conducted by a certified real estate appraiser, is essential for determining the accurate market value of assets. This evaluation extends beyond the primary residence to encompass various properties and assets, ensuring a fair division. Ultimately, consulting with a divorce attorney in New Jersey can provide further clarity on the appraisal process and its implications, aiding in informed decision-making throughout the divorce proceedings.
When you are ready to begin your divorce proceedings, count on the team of Ziegler Law Group, LLC to help. Our experience in dealing with the division of marital property is extensive, and assist throughout the appraisal and divorce proceedings. It’s time to move forward with your life. Contact Ziegler Law Group, LLC today at 973-533-1100 or by filling out the online form to schedule a zero obligation consultation.
