New Beginnings Selling the Matrimonial Home in a Divorce By Daniella Gold, Harvey Kalles Real Estate Some of the biggest questions that arise during a separation or divorce have to do with the matrimonial home: What’s my home worth? Will I need to sell? What if I want to buy my spouse out? What if they want to buy me out and I refuse? If you’re grappling with similar questions, read on. Of course, this article is not to be construed as independent legal advice. Every situation is different, but we hope that this will help improve your familiarity with some important concepts. WHY IS IT IMPORTANT TO KNOW THE VALUE OF A MATRIMONIAL HOME? It is very important to determine the value of a matrimonial home in the context of a marriage breakdown. The home is often one of the most valuable assets, if not the most valuable asset that people own. Both spouses deserve to be compensated fairly for the value of this asset in the context of the overall settlement. If the home is jointly owned and will be sold as part of the separation process, the value will be straightforward: it’s simply going to be the price the buyer pays. Often, the parties will simply agree to divide the sale proceeds equally, after adjusting for the remainder of the agreed upon property settlement. WHAT IS AN APPRAISAL? An assessment of the value of the home – also known as the “market value.” Market value, in 30 | the COLLECTION
short, is the highest estimated monetary value a property will bring if listed for sale on the open market. The value can be expressed as one number or as a range. WHO CAN DO AN APPRAISAL FOR YOU? Previously, only a certified appraiser’s report was acceptable to lawyers, mediators and judges. These days, however, licensed real estate agents can also provide appraisals. Many separating spouses are choosing to retain a real estate agent, or agents, jointly, to provide the appraisal, since real estate agents are the professionals most familiar with area properties and current market forces. WHAT IF I WANT TO BUY MY SPOUSE OUT? Many people sell their homes when they get divorced. When the decision is made not to sell, however, it’s crucial to take all possible steps to get the value right. These situations include but are not limited to: • One spouse wanting to purchase the other spouse’s share of the home (i.e. exchange money for a title transfer) as part of the final settlement;
