One of the challenges of going through a divorce is dividing the property. If you have real estate, you need to know a few basic points so that you can be sure you’re doing what’s best for your needs. One thing that you need to realize is that there are many numbers that apply to real estate.
Two numbers, the fair market value and the assessed value, are primary factors in the property division process. When you are trying to determine whether to sell the home or have one spouse buy the other out, the fair market value is what you need to know.
In order to come up with the fair market value, a real estate appraiser will review the comparable sales for your home. This gives them a range of prices for homes that are similar to yours in the same market. From there, they can factor in any extras or special features your home has.
They will also review the assessed value that’s used for tax purposes. While this might not be a primary factor in the fair market value, it is a good thing to know since it determines how much you will pay in each tax session.
Once you know the fair market value, you will know what to sell the home for or what the buyout is for one spouse to walk away with the home in the divorce. You might consider getting an appraisal by more than one person because some features are handled differently by different people.
You also have to consider that mortgage that’s on the property and any equity that’s built up over time. Use all of these factors to determine how you want to handle the real estate assets during the property division phase of the divorce.