Divorce Settlement Appraisals

Going through a divorce is challenging time for everyone involved. There are decisions to be made that involve children, investments, assets, and who gets the house. The two most common choices regarding the house and other real estate are selling and dividing the proceeds, or one party or the other can buy out the other. Both of these scenarios will require an appraisal of the residence and other types of real estate.

Here are some key differences between a divorce appraisal as opposed to the typical appraisal used for lending purposes:

  • The divorce appraisal may have a retrospective date of value. This means that the value of the property will be based upon a date in the past, such as the filing date, or the date of the marriage, for example, rather than the current date.
  • Sometimes, the appraisal will be required to provide both a retrospective value as well as a current value of the property.
  • There are occasions when the appraiser may be called upon to testify in court as an expert witness. The appraiser will not be an advocate for either side in the court proceedings, no matter which party may have hired him/her. The appraiser may only testify about the appraisal and the data and analyses contained within the report.
  • The divorce appraisal is not used for financing or lending purposes, therefore, it does not have to comply with Fannie Mae (or UAD) guidelines.
  • A divorce appraisal is usually completed on non-Fannie Mae forms such as the GPAR (General Purpose Appraisal Report) or in a written narrative format.
  • When completing an appraisal for divorce purposes, the appraiser is bound by the same confidentiality and USPAP requirements he or she would be in completing a lending appraisal. This means that the appraiser cannot share information about the appraisal with any party other than his client and/or the client’s attorney unless legally required to do so.

If you are going through a divorce, or an attorney or mediator, and are in need of a divorce appraisal, we would be happy to speak with you and answer any questions you may have. We are able to professionally and discreetly take care of this appraisal need. Please give our office a call at 508.559.0444 or email us at office@naacc.com