One of the steps in some divorces is a home appraisal. An appraisal is a third-party estimate of the current value of the home, often based on a number of factors that can change over time. What you purchased your home for or think it is worth is of no consequence. Instead, you must know the current market value of the home to have a good understanding of its worth.

Knowing the value of your assets including your home is critical during a divorce. Most often, a divorce requires the division of marital property in an equitable fashion. However, you cannot make such decisions if you do not have clarity on the actual value of the property.

As your New Jersey family lawyer, you can depend on Jersey Coast Family Law and Family Law Attorney Abigale Stolfe to help you navigate what comes next. In many situations, a New Jersey divorce home appraisal will be a critical factor in this process.

When Is a New Jersey Divorce Home Appraisal Necessary?

The decision to have a home appraisal is based on various factors. It provides an accurate market value for the marital home. It is most likely to be necessary in situations where one spouse wants to keep the home or in situations where the home will be sold and the proceeds split between both parties. You may not know what your best move is yet, and a home appraisal can shed some light on that. It helps ensure a fair division of assets and helps to clarify financial contributions.

Who Pays for the Appraisal in the Divorce?

In most situations, both spouses will agree on a qualified appraiser for the job. This typically should be a third party who knows the area well but does not know or has not had any previous engagement with either spouse or the home. In short, they provide an unbiased opinion about the home’s value in order to provide a baseline for the division of it. Most often, the cost of the New Jersey divorce home appraisal is divided between both parties.

What to Do If You Disagree with a Home Appraisal in Divorce

In situations where one spouse does not agree with the appraisal, it is their right to seek an additional appraisal as verification. The value decision is highly objective, and a second appraisal may be beneficial.

If a Comparative Market Analysis (CMA) is completed on the property, but the factors used within it are inaccurate or outdated, that information can also be challenged in the divorce proceedings.

For example, if the home appraises for $100,000 less than anticipated, that could skew other asset divisions and may need to be either verified through a second appraisal or challenged with more accurate comps. In either situation, you have the legal right to pursue more information or challenge the decision.

CMA vs Appraisal: Understanding the Difference and Their Use in Divorce

A Comparative Market Analysis is a comprehensive, research-based approach to determining the value of real estate. It is based on homes within the same city or neighborhood that are similar in age, style, condition, and size and sold within the last few months. It allows for properties that are similar to each other to be compared. Ultimately, the value of a home is always dependent on the specifics among real buyers who will pay for it. Using comps from recent sales of homes like your own offers a clear indication of what your home may be worth.

A traditional appraisal, conducted by a licensed appraiser, can offer a more specific value based on the actual features, updates, and condition of the property. An appraisal tends to be more reliable for legal proceedings because it is very specific to your home, allowing the court to make better decisions about the value if it was sold today.

The Benefits of Having an Appraisal Completed

Before you make the decision on keeping or dividing the marital home in New Jersey, consider having a CMA and appraisal completed. As your divorce attorney, we can offer guidance on this process. With the information from these reports, you can:

  • Make decisions about whether you should keep the home or sell it
  • Carefully consider your ability to sell the home at a fair value
  • Determine the worth of the home so that other assets may be used to offset the equitable value if the other spouse wants to keep it

Our New Jersey family lawyer will answer your questions about the division process and the legal rights you have. Remember that your attorney does not contact an appraisal, but a third-party licensed professional does. As a result, the information they provide as a licensed professional is considered accurate and can be relied upon. These processes use the most up-to-date market conditions.

Whether you want to keep the home or sell it, an accurate understanding of its value ensures you make the right decision for your future. This can be a powerful negotiating tool.

Let Our New Jersey Family Lawyers Guide You Through This Process

As your attorney, we represent you throughout this process. If you are unsure if you need a New Jersey divorce home appraisal or what the value means to the division of assets in your case, reach out to our legal team. Allow our attorneys to provide you with the guidance you need.

Call Jersey Coast Family Law at 732-361-4718 now to discuss your case with our family law attorney. Find out what legal steps you can take to protect your home if you want to keep it or force the sale of it at a fair value so the proceeds can be added to the divorce assets.

Learn more about your options. Contact our family law attorneys now. We have offices in Toms River and Red Bank ready to meet your needs throughout New Jersey. Set up a consultation with our legal team now to learn more about your rights and options.

Check out our other blogs: How Divorce Affects Your Estate Plan in New Jersey: A Guide to Essential Updates.