Equitabable Distribution


#1

My husband and I have agreed to equitable distribution. We had our house appraised it came in at $337,000 3mos ago. My husband had the house reappraised recently to refinance to buy me out. The appraisal came in at $405,000. There hasn’t been that big of changes in the housing market in our area. We haven’t refinanced the house yet. Its scheduled for soon. Is there anything I can do to challange the original apprasal.


#2

The valuation date is the date of separation. Any repairs or improvements your husband made after the date of separation and increasing the value of the home, are not accounted for in the division.


#3

How do you determine the value of the home at the time of separation if you did not get an appraisal on that date? Our real estate agent said that we should list the house at $320,000 a month before he moved out. I then put $10,000 of my own money into the home and had it appraised 8 months later and it appraised at $350,000. The house was on the market last year for $375,000 is on the market this year for $335,000 and has not yet sold. What would the market value be considered in this situation?


#4

You may have an appraisal completed to determine what the value was on the date of separation. The date of separation value is used when dividing property, however any passive changes in value from the date of separation to the date of division are divisible as well. The active increase in value (the amount of increased value resulting from your renovations) is not divisible.


#5

What about devaluation of the property from the date of separation that is not from housing market factors? My STBX did not keep up maintenance on the house and it is now in need of repair, especially landscaping. The damage (or neglect) is great enough where it would decrease the value of the home. Am I going to lose money on the house from my STBX’s negligence after the date of separation?


#6

No, if depreciation is attributable to one party’s neglect, or active destruction the decrease in value is not divisible.