Start Your Divorce Today - Premium Divorce Online

Topic Options
#48785 - 12/01/05 11:21 PM How to value Real Estate
wanorm Offline
recently joined

Registered: 12/01/05
Posts: 7
My wife and I are working on an 'agreeable' divorce. Our house is completely paid for and I would like to keep it and she would like to maximize the money she gets which is understandable. Of course she would be paid half it's value from our other community assests. The question is: What is the value? We had it appraised and got the market value from that. But, it's 'cash' value is less because to 'convert' it to cash, ie sell it, there would be selling expenses (RE sales commisions, RE Excise tax, title insurance, etc) AND significant Federal Income tax due on the capital gain. All this adds up to about 15% of the sale price of the house. So it would seem fair and appropriate that the value of the house is its equivalent cash value. It just does not seem like we are comparing apples to apples when we talk about spliting the money in bank accounts and splitting the house based on its full appraisal value.

I have searched through all the Washington State Courts websites I could find and could not find any definitive answer to this.

Unfortuantely due to our total finacial situation (too long to explain here) if we use the full appraised value I would likely be unable to afford to keep the house and it would have to be sold anyway and then we truly would only be spliting the net sale proceeds, so she (and I) only get half of the actual cash value anyway.

Anyone know what the court would use for the value of a house if it is not sold and given to one spouse?

Norm

Top
#48786 - 12/02/05 03:04 AM Re: How to value Real Estate [Re: wanorm]
RJP Offline
newbie

Registered: 10/31/05
Posts: 26
Loc: Pierce County, WA
You do get around, see "Financial Issues".

Top
#48787 - 12/03/05 12:31 AM Re: How to value Real Estate [Re: RJP]
wanorm Offline
recently joined

Registered: 12/01/05
Posts: 7
Yes, I do. Just wanted to cover all the appropriate places!

Top
#48788 - 08/30/06 04:20 PM Re: How to value Real Estate [Re: wanorm]
HHLoanOfficer Offline
recently joined

Registered: 08/29/06
Posts: 14
You seem to answer your own question. The value you agree on is negotiable. So it would be perfected acceptable or reasonable to use a figure such as 90% of the aprraised value or what ever the net proceeds would be after a sale. The tax considerations can also be considered but if there is no sale there aren't any actual tax consequences. Although potential tax consequenses can be considered for the spouse who ultimately may sell. Don't forget the exemption for sale of your primary home. You may want to consult an attorney or CPA. But don't forget the additioal expenses that the spouse leaving will incur when they move, buy or rent.
_________________________
Hank H. Residential Mortgage Specialist [email protected]

Top
#48789 - 10/30/06 08:11 AM Re: How to value Real Estate [Re: HHLoanOfficer]
Rights Offline
recently joined

Registered: 10/30/06
Posts: 3
You would need to get a "Net Proceeds" on the house. This will show what it sells for, minus excise taxes, commissiones, etc. The remainder is what you get to keep, based on it selling for the market price.

Of course, the market is what a willing buyer would pay for it. Get a good agent to recommend a sales price for you. And, of course that will depend on when you sell it. Today is not the best time to sell, if you can wait until Feb, March, April timeframe. Of course, if you aren't wanting to sell, and this might be a good time to get a valuation of the home, since we are moving into the slowest time of the year, when prices seem to soften the most.

BTW, Capital Gains are only a consideration if you earn over $250,000 on the sale, $500,000 for the two of you. And, if you sold it and bought a new home, there would be no consequence to you.

Top

Moderator:  dsAdmin 


Resources & Tools
Start Your Divorce Online Start Your Divorce
Several Options to Get Started Today.
Divorce Tools Online Divorce Tools
Keeping it Simple to Get the Job Done.
Divorce Downloads Download Center
Instantly Download Books, Guides & Forms.
Divorce and Custody Books Discount Books
Over 100 of the Best Divorce & Custody Books.
Negotiate Online Negotiate Online
Settle your Divorce and Save.
Custody and Support Tracking Custody Scheduling
Make Sure You Document Everything.

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code: