An appraisal helps to determine the fair market value of assets such as real estate, businesses, and personal property. Those going through a divorce may need an appraisal if one of the following apply:
- Disagreement on asset value: If unable to agree on the value of a particular asset, an appraisal can provide an objective assessment.
- Complex assets: Assets like businesses or unique properties may require specialized appraisals to accurately determine their worth.
- Significant changes in value: If an asset has significantly appreciated or depreciated since acquisition, an appraisal can help reflect its current value.
Those who fall into one of these categories should consider an appraisal to help better ensure a fair division of assets during divorce.
What are common appraisal methods?
There are several methods used to appraise assets during a divorce. One option is comparative market analysis. This method involves comparing the asset to similar ones that have recently sold in the area and works well for real estate. Businesses often use an income approach which evaluates the asset based on its ability to generate income.
For other assets, the cost approach can work well. This method estimates the value of an asset by determining the cost to replace it with a similar one.
How are assets divided in Florida?
Florida follows the principle of equitable distribution, meaning the state divides assets fairly but not necessarily equally. Each party’s contribution, including financial and non-financial efforts as well as the financial situation and duration of the marriage are taken into account when dividing assets. It is important to keep this in mind when negotiating the property division determination portion of the divorce. This can help to guide discussions, including those involving valuable assets like real estate and business interests that likely require an appraisal.
What if I want to keep sole ownership of a high value asset?
This is possible. It can help to negotiate other assets of similar value in exchange for sole ownership of the desired asset. Common examples include trading a vacation property or stock options to retain sole ownership of business interests. When negotiations are done wisely, you can tailor the proposal to your specific situation and better ensure a split that works for both parties while also mitigating the risk of any surprises after you finalize the divorce.