Registered: 1232979792 Posts: 2,863
Reply with quote #1
What is the effective date of a divorce appraisal?
1. Date of inspection 2. Date of the legal separation 3. Date ordered by the court 4. Other date Be careful when you do divorce work...don't let your report get impeached by the Judge. __________________ M. E. "Don't call him a cowboy until you see him ride'
Registered: 1203300129 Posts: 2,704
Reply with quote #2
The effective date of a divorce appraisal is dictated by the intended use.
There are other things that may affect the effective date. A person whose spouse inherited a house during the marriage my be entitled to appreciation (or maybe nothing). I'm not sure which. If an appraisal is required, the effective date would be the date of the inheritance. This is prevalent in common law states so I am not sure how it works. If the intended use is for one party to buy the other out, the effective date is the date of inspection. If the intended use is to estimate the appreciation since the marriage date, the effective date is the date of the marriage. This is not uncommon when one spouse owns the house at the time of the marriage. The other spouse is only entitled to half the appreciation. The same holds true when a spouse sells an inherited house and buys another house with the proceeds. The effective date is the date of purchase of the second house. The inheriting spouse must be careful not to use marital money to buy the second house or it becomes community property (commingling). Finally, the client may indicate an intended use and an effective date. I had one one time that the effective date was the date he moved in by agreement between the parties.