Property Appraisal Divorce

Property Appraisal Divorce

Divorce Appraisal

DIVORCE APPRAISAL for a professional practice or business becomes the part of a divorce proceeding, it is wise to seek a professional divorce appraisal, so that a fair valuation of the business can be established. This will help to ensure that a satisfactory distribution of the marital assets can be reached.

In most cases, if the business is to be sold, there are few issues. However, if one spouse plans to continue to run the business once the divorce is complete, differences in opinion on the value of the business often arise. It is in these cases where a professional divorce appraisal is vital to help settle any disputes, and help to establish a fair value for the business, so that a settlement can be reached.

In terms of establishing a value for a professional business, ‘fair market value’ is used. However, this standard can be influenced by emotion, if done by the parties involved, rather than by a professional divorce appraiser. For this reason, it is best to obtain a professional divorce appraisal so that the value determined is fair to both parties.

Things that influence fair market value include the following: current accounts receivable, fixed assets, goodwill, liabilities and work in progress. All of these things will be taken into consideration during a professional divorce appraisal to help determine the dollar value of the business. Should negotiations break down your professional divorce appraisal should be prepared by an expert appraisal witness who specializes in irrefutable appraisal testimony.

But what is fair market value? The term means that it is the value at which a property would be sold to a willing buying, where circumstances do not dictate the need to sell or buy at that particular time, and where both parties have an understanding of the relevant facts.

Different types of businesses tend to inspire a different value, so it is imperative that a professional divorce appraisal be conducted if a professional business is an asset involved in divorce proceedings. An appraiser will be able to determine, based on the type of business, what the fair market value of a business would be, should it be sold.

By seeking a professional divorce appraisal where a professional practice or business is concerned, you will ensure that the value determined is one based upon fair market value, and not clouded by emotions, or ‘future possibilities’.

Fussell Valuation Associates are Senior Professional Appraisers with nationwide experience. Seven appraisers have a combined valuation experience of 70 years. We offer expert appraisal testimony for the divorce appraisal and all other appraisals we prepare. Call us at 480 463 6579.

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