Divorce can be extremely challenging for many reasons. One reason that divorce often becomes contentious is due to child custody arrangements. But often, it can become combative due to the division of the marital assets. One thing that can help to make that situation easier: an appraiser. Here is how an appraiser can help you to divide your marital assets in a divorce.
What Does an Appraiser Do?
An appraiser is someone whose job is to figure out the fair market value of an asset. The fair market value is the amount of money that an informed seller and an informed and motivated buyer would agree upon in order to conduct a purchase.
The techniques for determining the fair market value of an asset depend largely on the type of asset in question. One of the biggest marital assets that a couple must divide in a divorce is the family home. There are three common techniques that an appraiser may use when evaluating your real property.
What Are the Techniques for Appraising Real Estate
Appraisers use one of three different techniques for appraising the fair market value of the marital home, or another piece of real estate.
- The Cost Approach
The cost approach, sometimes referred to as the replacement cost approach, considers what the cost would be to replace the property. Unfortunately, determining this by using current prices for labor and materials can prove rather unreliable, which is why the following two techniques are more commonly used.
- The Income Approach
The income approach requires the appraiser to estimate the net income that the property produces within a period of either a month or a year. He or she uses an interest rate that has already been established in order to deduct the income stream.
- The Comparable Sales Approach
Finally, the most common approach is the comparable sales approach. With this approach, the appraiser looks to other properties of the same or similar size and amenities in the same neighborhood or central area. He or she then determines the value of the marital property by comparing it to these other properties.
The New York Family Law Attorneys at Macedonio & Duncan, LLP Can Help
If you or a loved one is going through a divorce, it can be a really difficult time. When the situation already has your emotions running high, it can be tough to know how to deal with the division of marital assets. That’s why it’s in your best interest to consult with a qualified New York family law attorney.
The Suffolk County family law attorneys at Macedonio & Duncan, LLP can help you to fight to keep those assets that you are entitled to. We will help you to protect your interests. To learn more or to schedule a confidential consultation, contact us today!