On behalf of Stange Law Firm, PC posted in family law on Friday, May 1, 2020.
Going through a divorce can be very difficult. It can be even harder to do if you and your ex own hard-to-value assets. Divorcing spouses and their attorneys often have to ask a professional appraiser to step in and determine the value of their assets when they can’t agree on what they’re worth.
It’s not always necessary for a divorcing couple to call in a professional appraiser to assign values to their assets. Family law attorneys or divorce mediators can broker agreements between spouses about what certain marital assets are worth.
Husbands and wives here in St. Louis can also ask the judge presiding over their case to decide how assets are to be divided. The court will rely on the opinions and testimony of witnesses such as real estate appraisers or antique dealers if they’re asked to decide such matters.
Many divorcing couples have home valuations performed to determine the value of any residences that they may own. An appraiser in this case usually performs a comparative market analysis (CMA). They generally look at current listings and recently sold properties, home appreciation and depreciation and any improvements that have been made as part of this process.
Appraisers generally use one of three different methodologies to determine the value of the real estate. They use either the cost, market comparison or revenue approach models.
An appraiser who uses the cost approach model generally estimates how much it would cost to replace an item. One who uses the market comparison approach model looks at how much similar items have recently sold for. Any appraiser that uses the revenue approach generally examines the current and future revenue potential of an item, e.g., a piece of artwork.
Appraisers take into account various factors when determining the value of a business. They tend to look at the debts and assets that the Missouri company has, as well as its profit margins and increases in value since the last valuation occurred.
If you’re considering getting divorced and are having a hard time dividing your marital assets, you may benefit from discussing your case with a family law attorney. Your St. Louis lawyer can help you plan ahead for property division in divorce.