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Term Definition Cost Approach - a set of procedures in which an appraiser derives a value by estimating the current cost to reproduce or replace an existing structure, deducting for all accrued depreciation in the property and adding the estimated land value.
Application in Divorce The use of a cost approach to appraising the value of a property may produce a dollar value different from a market or assets.

Both divorcing parties may hire his or her own appraisers to value certain valuation used was correct or fair is often the topic of discussion.

See also Replacement Cost; Replacement Value; Reproduction Cost