Explaining “Fair Market Value” In a Property Division Settlement
California Divorce, Mediation, Property Division

Explaining “Fair Market Value” In a Property Division Settlement

When it comes to property division, particularly in the context of divorce or the dissolution of a partnership, “Fair Market Value” (FMV) is an essential concept. Understanding FMV is crucial for ensuring equitable distribution of assets and can significantly impact the outcome of property settlements. CA Certified Family Law Specialist Judy L. Burger breaks down what Fair Market Value is, how it is determined, and its relevance in property division settlements.

What is Fair Market Value (FMV)?

Fair Market Value is defined as the price that a property would sell for on the open market, under typical conditions, and between a willing seller and a willing buyer, both of whom are informed and not under any compulsion to buy or sell. In simpler terms, it represents what a property is worth in the current market, reflecting its true value based on comparable sales and market conditions.

In property division settlements, particularly during divorce proceedings, assets need to be evaluated and valued to ensure that both parties receive a fair share of the marital property. Considering FMV helps in:

  • Equitable Distribution: California requires the division of property to be “equitable,” meaning fair but not necessarily equal. FMV helps determine a realistic value for assets and guides how they should be divided.
  • Negotiations: Having an accurate FMV makes negotiations more straightforward. Both parties can enter discussions with a mutual understanding of what properties are worth, making it easier to agree on asset distribution.
  • Legal Proceedings: If a dispute arises and the case goes to court, the determination of FMV is often critical. Courts tend to rely on expert appraisals to establish FMV for assets involved in property division.

CA Property Division Attorney Judy Burger has a wealth of experience in dividing and valuing community assets and liabilities. With a keen eye for detail, she skillfully identifies separate property assets, ensuring that her clients’ individual assets are clearly acknowledged and legally confirmed. Judy has successfully navigated a variety of cases, specializing in the division of medium to large estates, where her expertise translates into effective and fair settlements for her clients.

How is FMV Determined?

Determining the Fair Market Value of a property may involve several methods:

  1. Comparative Market Analysis (CMA): This method involves comparing the property in question to similar properties that have recently sold in the same area. Real estate agents often conduct CMAs to estimate property values.
  2. Professional Appraisal: A qualified appraiser can provide an unbiased FMV assessment. To arrive at a value, they will consider factors such as property location, size, condition, and recent sales of comparable properties.
  3. Income Approach: The FMV of investment properties may be determined based on their income. This approach estimates the property’s worth based on its potential to produce income.
  4. Cost Approach: This method considers the cost to replace or reproduce the property minus depreciation. It’s often used for unique properties or those with few comparable sales.

Challenges in Determining FMV

While the concept of Fair Market Value may sound straightforward, various challenges can arise during its determination:

  • Market Fluctuations: Real estate markets are dynamic. Economic conditions, interest rates, and other factors can affect property values over time, leading to potential disputes over FMV.
  • Emotional Attachments: Parties involved in property division may have emotional attachments to certain properties, which can cloud their judgment regarding its FMV.
  • Disagreements on Valuation Methods: Different methods of determining FMV may lead to varying results, and parties may disagree on which approach is most suitable.

Understanding Fair Market Value is essential for anyone navigating property division settlements in divorce or partnership dissolutions. It serves as a cornerstone for equitable distribution and ensures that both parties are treated fairly based on the actual value of their assets.

Learn More About Fair Market Value in a CA Divorce Property Division

Engaging an experienced and qualified Family Law Specialist like Judy Burger can help clarify the value of properties in question, making the settlement process smoother and more just. Whether you’re planning to negotiate a settlement or are preparing for potential litigation, a solid grasp of FMV will empower you to advocate for your interests effectively.

Ms. Burger has extensive relationships with Forensic Accountants and Actuaries, Litigation Real Estate Appraisers, Real Estate Attorneys, Business and Corporate Attorneys, Title Companies, and Real Estate Professionals who assist her in determining the FMV of properties during divorce proceedings. Contact The Law Offices of Judy L. Burger nearest you for more information and assistance. 

Revocable Trusts in a Divorce Property Division
California Divorce, Property Division

Revocable Trusts in a Divorce Property Division

One of the most critical aspects to address when navigating the complexities of divorce is property division. In California, which follows a community property system, understanding how revocable trusts impact property division is essential. California Certified Family Law Specialist Judy L. Burger sheds light on revocable trusts, how they function during a divorce, and how individuals can protect their interests.

What is a Revocable Trust?

A revocable trust, also known as a living trust, is a legal arrangement where the trustor (the person who creates the trust) maintains control over the assets within the trust during their lifetime. The trustor can modify or revoke the trust at any time, hence the term “revocable.” Assets placed in a revocable trust generally avoid probate, ensuring a smoother transfer of property upon the trustor’s death. The trust remains private and becomes irrevocable upon the grantor’s death.

Revocable Trusts and Community Property

In California, all property acquired during the marriage is typically considered community property, subject to equal division upon divorce. However, the classification of assets becomes intricate when a revocable trust is involved.

  1. Trust Assets as Community Property: If both spouses contributed to the trust assets or if the trust was created during the marriage, the assets within the revocable trust are usually categorized as community property. This means they would be divided equally between both parties in a divorce.
  2. Separate Property Contributions: If one spouse funded the trust with their separate property (assets owned before the marriage or received as a gift/inheritance), those assets may remain separate property. To ensure this classification, it’s crucial to maintain clear documentation and delineation of these assets.

Key Considerations in Divorce Proceedings

Here are some important factors to keep in mind regarding revocable trusts during a divorce in California:

  • Transparency: Both spouses have the right to access and review the trust documents and the assets held within the trust. Full disclosure is critical, and failing to disclose trust assets could lead to complications in the property division.
  • Valuation of Trust Assets: Determining the value of the trust’s assets can be complex. It may require hiring an appraiser or financial expert, especially if the trust holds real estate, investments, or valuable personal property. Ensuring accurate valuation is crucial for fair property division.
  • Revocation and Modification: If the trustor wishes to make changes or revoke the trust during divorce proceedings, they should do so with caution. The other spouse could contest the modification or revocation, especially if they believe it affects their share of the community property.

What About Commingled Assets?

Commingling refers to the situation where separate property is mixed with community property, which can complicate the process of identifying and distinguishing between the two types of assets. When trust assets become commingled, a forensic accountant may be necessary to help trace the source of the funds and classify them correctly.

Legal Assistance with CA Property Division

Given the intricacies of revocable trusts and property division during divorce, seeking legal counsel is highly advisable. CA Certified Family Law Specialist Judy Burger can help navigate the following:

  • Evaluating the nature of the trust assets and whether they are classified as community or separate property.
  • Facilitating negotiations regarding asset division.
  • Representing your interests in court, if necessary.

Revocable trusts can significantly impact property division in a California divorce. Understanding how these trusts function within the framework of community property laws is essential for ensuring a fair and equitable division of assets.

If you are facing a divorce and have a revocable trust, contact The Law Offices of Judy L. Burger to obtain clarity and guidance through the challenges of property division. Remember, preparing for divorce involves not just emotional considerations but also strategic planning to protect your financial future. Get the professional legal help you deserve.

Is My Spouse Entitled to Half My House If It's In My Name in California?
California Divorce, Debt, Property Division

Is My Spouse Entitled to Half My House in a Property Division If It’s In My Name in California?

One common concern when navigating the complexities of divorce in California is property division, particularly regarding the family home. Many individuals wonder: If the house is solely in my name, does my spouse still have a claim to half of it? CA Property Division Attorney Judy L. Burger offers a deeper understanding of California’s community property laws to help clarify this question.

Understanding Community Property in California

California is a community property state, which means that most assets acquired during the marriage are considered community property and are subject to equal division upon divorce. This includes income, real estate, and other assets acquired while married, regardless of whose name is on the title.

If the house was purchased during the marriage, it is generally presumed to be community property, even if only one spouse’s name is on the title. This means that both spouses typically have a claim to the house, and it could potentially be divided equally during the divorce proceedings. However, there are exceptions to the community property presumption.

Exceptions: Separate Property

Not all property is community property. Any assets owned by either spouse before marriage or acquired by gift or inheritance are considered separate property and are not subject to division. If you owned the house before marriage and it remained in your name, it may be classified as separate property. However, if you made mortgage payments or significant improvements to the house during the marriage using community funds, your spouse might argue they have a claim to the increased value of the property.

It’s important to consider contributions made by your spouse. If your spouse contributed financially to the house, even if it’s solely in your name, they might have a valid claim. For instance, if they helped with mortgage payments, upkeep, or renovations, these contributions could afford them rights to the property or increase their share during division.

Protecting Your Family Home

If you suspect a divorce is in your future, you can take steps to ensure that your home remains distinct from marital assets to safeguard it from being considered communal property. When possible, refrain from using communal assets to upgrade the home or make mortgage payments. Be sure to maintain thorough records if you inherited the home.

Individuals can also consider signing a prenuptial or postnuptial agreement to safeguard a family home from property division during a divorce. These legal agreements provide clear guidelines for property division and outline how homes, real estate, and other properties will be handled in the event of a divorce. By defining the property statuses and the rights and responsibilities of each spouse, these agreements can protect a family home.

Seek Legal Guidance from an Experienced CA Property Division Attorney

Given the intricacies of property division laws in California, it’s wise to consult a seasoned property division attorney like Judy Burger. She can provide personalized advice based on your specific situation, ensuring your rights are protected. Judy Burger can also help evaluate whether your house is community or separate property and guide you through the divorce process.

In California, whether your spouse is entitled to half or another portion of your house largely depends on factors like the property’s title, when it was acquired, and any contributions made during the marriage. If you’re facing divorce and have questions about your home and property rights, reach out to CA Certified Family Law Specialist Judy L. Burger today.

 

Top Tips for the Smoothest Property Division
California Divorce, Property Division

Top Tips for the Smoothest Property Division

Dividing property during a divorce can be one of the most challenging and potentially problematic aspects of the process. Disagreements and misunderstandings can lead to serious mistakes and costly court battles. However, with careful planning and guidance, you can achieve a fair and equitable property division.

California Certified Family Law Specialist Judy L. Burger offers ten essential tips to help you navigate property division smoothly.

Property Division Top 10 Tips

Property division is typically the most problematic aspect of any divorce, but it doesn’t have to be like that; get informed and equipped for negotiations with these simple tips.

1. Know What Property is Marital vs. Separate

Because California is a community property state, separate and marital property is handled differently during a divorce:

  • Marital Property: Generally includes assets and debts acquired during the marriage. Familiarize yourself with your state’s laws regarding marital property to understand what will be subject to division.
  • Separate Property: Typically includes assets owned before the marriage or received as gifts or inheritances during the marriage. Clearly identify what qualifies as separate property.

2. Create a Comprehensive Inventory

List all assets and liabilities, including real estate, bank accounts, investments, retirement accounts, vehicles, inheritances, and personal property. This inventory will serve as the foundation for discussions and negotiations. Be honest and thorough to avoid complications later.

3. Assess the Value of Your Property

Get accurate valuations for significant assets. Consider hiring professionals, such as appraisers or financial experts, to provide credible assessments of property values. Knowing exactly what your assets are worth will aid in fair negotiations.

4. Understand the Impact of Debts

Property division is not solely about assets; consider debts too. Outstanding mortgages, credit card balances, and loans must also be addressed. Decide how to equitably divide the debts alongside the assets to avoid future financial burdens.

5. Prioritize Open Communication

Honest and respectful dialogue with your ex can lead to smoother negotiations. Discuss your priorities and concerns regarding property division directly. Aim for a collaborative approach rather than an adversarial one to create a more amicable environment.

6. Consider Mediation or Collaborative Law

If negotiations are challenging, consider using mediation or collaborative law services. These alternatives to traditional litigation can help both parties reach a mutually acceptable agreement with the support of professionals. Mediation can often lead to quicker resolutions and reduced stress.

7. Be Realistic with Your Expectations

Understand that compromise is often necessary in property division. Be willing to negotiate and prioritize what is most important to you, which can facilitate smoother discussions. Focus on equitable, not necessarily equal, division based on your specific circumstances.

8. Keep Emotion in Check

Property division can bring up strong emotions tied to relationships and memories. Strive to keep emotions separated from negotiations to make rational decisions. Take breaks if necessary and seek support from friends, family, or professionals to help manage stress.

9. Document Everything

Keep a record of all communications, agreements, and transactions regarding property division. This documentation can be invaluable if disputes arise later. Ensure that any agreements are formalized in writing and filed with the court if applicable.

10. Consult a CA Certified Family Law Specialist

Engage with CA Certified Family Law Specialist Judy Burger. She can provide valuable advice specific to your situation and ensure your rights are protected during the process. She can also help you understand state laws and guide you through negotiations and court proceedings if necessary.

Navigating the complexities of property division during a divorce doesn’t have to be overwhelming. By following these tips and seeking professional guidance throughout, you can work towards a fair resolution that sets the stage for your new beginning. Remember that clear communication and a focus on mutual interests can lead to a smoother process overall.

Contact The Law Offices of Judy L. Burger today to get seasoned guidance with your California divorce property division.

 

Exploring Business Valuations in a Property Division
Property Division

Exploring Business Valuations in a Property Division

One of the most contentious issues in divorce proceedings is dividing property and assets. This can be especially challenging when a couple owns a business together. In such cases, business valuations are an integral part of the property division process. CA Certified Family Law Specialist Judy L. Burger understands the intricacies of business valuations in a property division.

She has numerous long-term working relationships with area Forensic Accountants and Actuaries, Ligation Real Estate Appraisers, Real Estate Attorneys, Business and Corporate Attorneys, Title Companies, and Real Estate Professionals who assist her when business valuations are needed for a divorce case.

Let’s explore this topic a bit further.

What Are Business Valuations?

Business valuations are the process of determining the economic value of a business or company. It is a complex process that involves analyzing the financial records of the company, its assets, liabilities, market competition, and other relevant factors. The value of a business includes various factors, including, but not limited to the following:

  • Profitability
  • Growth potential
  • Future earnings prospects
  • Market competition
  • Industry trends
  • Capital structure
  • Market value of assets
  • Company management

A jointly-owned business is considered to be an asset in divorce cases and is subject to division between the divorcing spouses. This can often be challenging because each spouse may have differing options about the value of the business, and some of these may be difficult to quantify objectively. As a result, disputes and conflicts are common.

Attorney Judy Burger works with respected professionals who are experienced business valuation experts to help overcome these challenges. They partner together to thoroughly analyze the financial records, assess assets and liabilities, and consider other relevant factors that impact the company’s value.

Methods of Business Valuations

Selecting the correct valuation method is one of the most critical factors in business valuations. Several valuation methods are available. Choosing the best method depends on the type of business, its size, and other relevant factors. Judy Burger and her team of experts choose the most appropriate method for valuing the business.

There are over a dozen different business valuation methods, but these are the most common:

Asset-based Approach

Also called the book value method, this valuation method is based on the value of the company’s assets, including its tangible and intangible assets. The expert will consider the value of the company’s assets, such as its inventory, property, and equipment, and subtract its liabilities to arrive at the net asset value of the business.

Income-based Approach

This valuation method is based on the income generated by the business. The expert will assess the company’s historical and projected earnings and apply an appropriate capitalization rate or discount rate to arrive at the present value of the business.

Market-based Approach

This valuation method is based on the market value of similar businesses. The expert will analyze the sales of comparable businesses and arrive at a fair market value for the business being valued.

Times Revenue Method

The times revenue valuation method uses a multiplier dependent on the industry and economic environment of the business. It is applied to a stream of revenues generated over a certain period of time.

Get Help with Business Valuations and Property Division in a CA Divorce

Establishing the correct value of a business in a divorce case can be a challenging process, so it requires skills and expertise. Certified Family Law Specialist Judy Burger works with experienced valuation experts to ensure a fair and accurate valuation of your business. She is tenacious regarding fairness and preserving your rights throughout the divorce and property division journey.

Contact The Law Offices of Judy L. Burger for more information and to schedule a consultation.

What Duties Do Spouses Owe to Each Other?
Marriage

What Duties Do Spouses Owe to Each Other?

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You have probably heard the term “fiduciary” used in the context of business relationships. In a nutshell, married people have a fiduciary duty to one another in all matters involving marital property. Marital property is anything of value that is obtained or accumulated while a couple is married.

California Family Code § 721 provides that “in transactions between themselves, spouses are subject to the general rules governing fiduciary relationships . . ..” What exactly does that mean? It means a duty of “good faith and fair dealing” with one another. This code section also states that the duty is the same as between business partners who are not married.

In practical terms, each spouse is obligated to ensure that in any action that adds to or diminishes marital property, the interests of the other spouse are protected. Section 721 authorizes spouses to enter into transactions with third persons. This can range from very basic things like buying a television to more complex things like investing retirement funds. The fiduciary duty imposed by the law protects the spouse who is not involved in the transaction.

The general idea of a fiduciary relationship is that one party trusts another to act on her behalf in financial matters. This is true in various business relationships, such as banking and investments, as well as in matters of marital property. The person being trusted has a fiduciary duty to ensure to the greatest extent possible that the trusting person’s financial interests are not harmed.

In many marriages, one of the spouses manages the household finances without much involvement from the other. The managing spouse functions as a trustee of the other spouse’s interest in the marital assets. If the managing spouse harms the other’s interest by error or fraud, then the trusting spouse has a cause of action just as she would against a business partner.

When a marriage is dissolved, disputes often arise regarding management of the marital assets by one spouse or the other. If a spouse is found to have harmed the other’s interest in the marital assets, California Family Code § 1101 permits the court to award an offset to restore the harmed spouse’s share of the marital assets she lost as a result of a transaction. This is true whether or not the managing spouse intended to cause harm. If a spouse is found to have fraudulently harmed the other’s interest, a court is required to grant 100 percent of the value of the fraudulent transaction to the harmed spouse.

In an ideal world, a spouse would never act in a way that is detrimental to the other. But that is not always the case. If you are contemplating divorce or need advice regarding matters of marital property, you should consult with an experienced California lawyer. The attorneys at the Law Offices of Judy L. Burger are experienced in difficult divorce proceedings and what it takes to sort out complexities in the marital estate. Call today to see how we can help you: (415) 293-8314.


 

Who “Owns” Money Damages Recovered by One Spouse During the Marriage?
Marriage

Who “Owns” Money Damages Recovered by One Spouse During the Marriage?

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Money damages received by a spouse as compensation for a personal injury that occurred during the marriage are owned by both parties. The money is marital property. As with most things that come up in the dissolution of a marriage, however, there are additional details to be considered.

While California Family Code § 780 provides that damages received for an injury that occurred during marriage are marital property, Section 781 states that if the injury occurred after entry of a final divorce decree or after separation of the parties, the money damages  are the separate property of the injured party. It is important to recognize, however, that whether a couple is considered legally separated can be complicated. If there is a formal separation approved by the court, there is no question. If not, the court considers various factors, including living arrangements, comingling of funds, and other indications of whether the couple otherwise functioned as if they were married.

If a couple dissolves a marriage during which one of the parties received money damages, California Family Code § 2603 provides for the allocation of those funds to the spouse who received them. But that is assuming the funds can be distinguished from other marital funds and have not been comingled. If, for example, the money was set aside in an investment account in the injured party’s name, that money, although marital property during the marriage, would be allocated to the injured spouse at the time of dissolution.

If the money damages were comingled with other marital funds, then they may be considered marital property at the time of dissolution. Where comingling is concerned, money damages are treated essentially the same as property owned by a spouse before the marriage. If the owning spouse allows the money or property to be comingled with other marital property, it is treated as part of the marital estate at the time of dissolution.

Once again, though, there are more details. Section 2603 also authorizes the court to allocate some of those funds to the non-injured spouse “after taking into account the economic condition and needs of each party, the time that has elapsed since the recovery[,] . . . and all other facts of the case.” If the court makes such an allocation, however, no more than one-half of the funds may be so allocated.

Division of the marital estate at the time a marriage is dissolved can be highly contentious and complicated. While state law provides the framework for issues such as money damages for personal injury, it also gives the courts broad discretion to achieve a fair outcome for both parties. If you are facing a divorce proceeding, especially one that involves a complicated estate, you should consult with an experienced California lawyer. The attorneys at the Law Offices of Judy L. Burger are well-versed in difficult divorce proceedings. Call today to see how we can help you: (415) 293-8314.

Who Controls Marital Property During the Marriage?
California Divorce, Marriage

Who Controls Marital Property During the Marriage?

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The assets a couple accumulates during marriage, for the most part, are marital property. This includes money and things of value such as automobiles, furnishings, and real property like the marital home. Each spouse is a 50 percent owner of the assets. There are circumstances under which property owned by one of the parties before marriage may become marital property, but that is beyond the scope of this article.

Marital property may be controlled by either or both parties to a marriage. Both own half of the property, and both have the authority to manage or dispose of the property but with this limitation: the controlling spouse cannot act in a way that diminishes the other spouse’s 50 percent share of the asset’s value.

The underlying concept of control of marital property is that marriage is a contract that imposes a “fiduciary duty” on each party. In the context of this discussion, the duty requires the spouse who exercises control over a particular asset to do so without damaging the other’s 50 percent interest in the property.

A good example of both the power to control an asset and the fiduciary duty is a car owned by a couple. Most married people officially title a car as belonging to John or Jane Doe. This means that in the eyes of the State of California, either John or Jane can assign the title of the car to a third person.

According to California Family Code § 1100, however, the party disposing of the car may not do so for less than “fair and reasonable” value without getting the consent of the other spouse. In the case of the car, the spouse could legally sell it according to state motor vehicle law, but if he did so for $10,000 less than its value without his spouse’s consent, the non-consenting spouse would have a claim against him.

In this example, the spouse selling the car has a fiduciary duty to the other spouse to maintain the value of her 50 percent interest in the fair and reasonable value of the car at the time of its disposition. A failure to do so results in the selling spouse being liable for that loss.

In the case of real property, it is little different. California Family Code § 1102 requires that any sale or encumbrance of real property, or its lease for more than one year, requires execution by both spouses. There is much less room for a spouse to take unilateral action without the other spouse’s agreement. A spouse is, however, authorized to encumber her half of real property for the purpose of engaging counsel once a proceeding for dissolution of the marriage has been commenced.

If you have concerns about your spouse’s management of marital assets, you should consult with an experienced California divorce lawyer. The attorneys at the Law Offices of Judy L. Burger will provide authoritative legal support tailored to your specific situation. Make the call today to learn how our attorneys can help: (415) 293-8314.


 

Can I Be Held Liable for Debts My Spouse Incurred if I Didn't Know about Them?
California Divorce, Debt

Can I Be Held Liable for Debts My Spouse Incurred if I Didn’t Know about Them?

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Spouses sometimes come into a marriage with debt and also separately incur debt during the course of the marriage. Sometimes these liabilities are known by the non-incurring spouse, and sometimes they are not. The basic rule in California is that both parties are liable for any marital debt accumulated during the marriage but before separation. This is true whether or not one of the parties even knew it was incurred.

Debts owed by a party prior to marriage, known or not to the spouse, are not the debt of the non-incurring spouse. At the time of a divorce, community property—property accumulated during the marriage—is used to satisfy community debt. If there is not sufficient community property to satisfy the debt, then both parties are assigned a portion of the debt to be paid from their own funds post-divorce.

Couples can sign pre-nuptial or post-nuptial agreements that allow debts incurred during marriage to be treated as separate debts under certain circumstances. For example, they might agree that a debt incurred unilaterally, with only the incurring party’s income and liabilities qualifying for the debt, is the separate debt of that party. Such agreements must be drafted carefully to ensure they are legally defensible if that becomes necessary.

Debt incurred by a spouse after separation but before divorce is that spouse’s debt, and the other spouse is not liable from her separate funds or her share of community property. There is but one exception to this rule: when the debt is incurred to provide the “necessaries of life” for the debt-incurring spouse and the separation is not by formal agreement.

If you need assistance in a family law proceeding, you should consult with an experienced California lawyer, especially if there are significant questions of debt and property ownership. The attorneys at the Law Offices of Judy L. Burger will provide authoritative legal support tailored to your specific situation. Make the call today to learn how our attorneys can help: (415) 293-8314.

California Divorce

How Are Appraisers Used in California Divorce Proceedings?

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How Are Appraisers Used in California Divorce Proceedings?In any divorce, the value of the marital estate must be established before the parties can be allocated their rightful share. The value many assets is obvious, but that is not the case for real estate. This type of property must be assigned a value. Most often, an appraiser will be hired to perform a formal litigation and real estate appraisal.


Real estate in a divorce usually is the family home, but it may also include vacation homes or business property. Business property is sometimes appraised within the context of the business itself being valued. See my previous blogs here regarding business valuations in divorce proceedings.


The parties to a divorce may retain their own appraisers or jointly select one. If the parties ultimately do not agree on a figure as suggested by the appraisal(s), the court will hear testimony and determine the fair market value. The appraisal of property can be pretty straightforward much of the time, but it can also become somewhat complicated and, at times, subjective.


Most appraisals are based on the sales of comparable properties in the geographic area. An average sale price is normally the key indicator, but any special or unique features of a home may increase or decrease the value assigned by a particular appraiser. For example, a detached garage converted to a workshop with special wiring for power tools might cause an appraiser to add to the average sale price. On the other hand, a backyard greenhouse might be seen as a specialty item that clutters the property and cost money to have removed.


It is also important to know that the assessed value of the property by county or municipal governments is researched by the appraiser, but these values usually have no real effect on fair market value. The assessed values are not based on professional appraisals and are also sometimes affected by laws governing the assessment of real property.


In selecting an appraiser, first make sure she is licensed by the state. Second, it is important to find someone who is knowledgeable of the local market and of the type of property being appraised. If there is business property, make sure the appraiser has experience or even specializes in that area. Similarly, if there is vacation property, make sure you hire someone in that market. An appraiser in San Francisco won’t know the business of vacation homes in Vail, Colorado.


Judy L. Burger’s experience as an aggressive family lawyer is paired with an extensive business background, an invaluable combination in contested divorce and separation proceedings. If you need the assistance of a lawyer who is not afraid to fight in court and who understands complicated financial issues, call her today at (415) 293-8314 or visit her online.