The fair market value of property that is going to be divided when you file for divorce is vital to the final agreement. If you fail to obtain the fair market value of any piece of property you could wind up losing out on a lot of money. Let’s discuss how fair market value is calculated when dividing property in a West Palm Beach divorce case.
The first step in this process is browsing for properties in the area that are comparable to your property. This can be the marital home, the vacation home or any other piece of real estate that you and your spouse own. You will want to look at the sale records for the last six months and compare properties that are of the same size and located in similar neighborhoods.
Once you find comparable properties, you can begin adjusting the average sales prices of those homes to reflect any changes you made to your property. This can include adding a pool, a deck, a new garage, renovations to bathrooms and more.
The next step is to reduce the value by all encumbrances on the home. Encumbrances are mortgages, loans or any other liens. These should be subtracted from the value of the home. This helps determine how much equity is left in the property. The equity value is the money that you and your spouse can divide when the divorce is finalized.
Dividing property in a Florida divorce is crucial to the final outcome for both spouses. If you don’t calculate the fair market value appropriately, you risk losing out on a lot of money.