Coming to terms with dividing your marital property with your ex can be challenging. It can be even more daunting if you two share collectibles and other hard-to-value assets. You may need to seek the help of a third-party professional to help you and your ex reach an agreement on the value of your property..
What options do you have for determining an asset’s value?
It is not always necessary to retain an appraiser’s services to assign value to disputed items. Mediators and your respective divorce attorneys can often facilitate an agreement on marital assets’ value and ownership.
You can also ask the court to divide your assets. They may require antique dealers or real estate appraisers to testify or provide written appraisals before the property gets split.
Approaches appraisers use to determine the value of assets
There are three different approaches that appraisers may use to assign value to some assets. The market comparison, cost or revenue approach models are most common.
Divorcing couples may ask their real estate appraiser to perform a comparative market analysis (CMA) when seeking a real estate valuation. Any appraiser tasked with performing this will generally look at recent sales and also account for improvements, depreciation and appreciation when performing this assessment.
Appraisers determine an asset’s replacement value as part of the cost approach model. They estimate how much it might cost to replace an item when using the future revenue.
Any spouses looking to divide a family business can expect their appraiser to look at their North Carolina company’s profit margins. Assets and debts, as well as recent revenue increases, are other pertinent factors used to determine value.
Divide hard-to-value assets in your divorce
Getting on the same page with your ex when hard-to-value assets are up for grabs may be a lofty goal. An attorney experienced in property division negotiations here in Charlotte may be able to help move your discussions along and allow you to finalize your North Carolina divorce.