Valuation for Divorce Property Settlement;
Florida Divorce Property
One of the major issues in a divorce is the
divorce property settlement between the spouses.
The spouses' property has to be characterized as
non-marital (separate) or marital property in
equitable distribution states (as Florida
divorce property is termed) and as separate or
community property in community property states.
The property also must be valued so that it can
be fairly divided and distributed.
Valuation is especially important for
real property, including the marital home,
because real property interests are often the
spouses' most valuable assets.
Most spouses have a marital home. The home can
be a free-standing house, a condominium unit, a
cooperative apartment or a manufactured home.
Spouses often also have a second, or vacation,
home. A vacation home can be any of the properties
just mentioned, or even a time-share
investment. This is often the case with Florida
divorce property.
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There are three kinds of valuation that can be
done on real estate:
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In the market or sales comparison approach, the
subject property, or divorce property which
is the property to be valued, is compared to
similar properties which have recently been
sold. The comparable sales should be as
close in location and type as possible to
the subject property. Adjustments can be
made for the differences between the
properties. This approach is most useful for
single-family homes or properties that are
sold on a unit basis, such as apartments in
apartment buildings or per-square-foot for
office buildings.
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In the capitalization of income approach, the
property's value is measured by determining
the present worth of the net income that the
property will generate. This approach is
often used to value income-producing
property which is purchased for investment
purposes. The approach is complicated, and
it should be done by a professional
appraiser.
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The cost approach is based on the principle of
substitution, that is, that no careful
person would purchase a property for more
than it cost to buy the land and construct a
building of equal desirability and utility.
This method is sometimes referred to as
reproduction cost new, less depreciation and
obsolescence. The cost approach is often
used as a check on the other two valuation
methods. It is also used for new buildings
and special use properties, and for
insurance or tax purposes.
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It is necessary to obtain appraisals or
valuations of the spouses' real properties.
State laws often require judges to determine the
fair market value of marital assets before
dividing the assets, and judges may refuse to
proceed in the absence of the required
information. They might also use the information
provided by just one spouse, this is why it is
essential to obtain the real value in divorce
property settlement.
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It is best to obtain the services of a
professional appraiser. Florida Certified
Appraisers, Inc. is well versed in this type of
assignment and is here to help. We specialize
in Florida divorce property valuation. Or you
can find such an appraiser using one or more of
the following sources:
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State licensing boards for real estate appraisers
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Appraisal societies and associations, such as the
American Society of Appraisers
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Securities organizations, such as the Federal Analysts
Federation
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Trade organizations
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Telephone directories
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Bar associations
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Business brokers
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Does all of our real property have to be valued?
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What kind of valuation is usually done for a house?
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Where can I find an appraiser to assess the value of our
property?
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