Divorce & Matrimonial Appraisals
Independent Real Estate Appraisals for Separation, Divorce & Matrimonial Property Matters
When a relationship ends, determining the value of real estate can be an important part of resolving financial matters between spouses.
The matrimonial home may be one of the largest assets involved. There may also be cottages, rental properties, investment properties, commercial real estate, vacant land or other properties that require valuation.
Cade Appraisals Inc. provides independent divorce and matrimonial real estate appraisals for individuals, family lawyers and other authorized parties who require a clear, objective and well-supported opinion of property value.
Our role is simple: to provide an impartial opinion of value based on the property and relevant market evidence, regardless of which party requests the appraisal.
What Is a Divorce or Matrimonial Appraisal?
A divorce or matrimonial appraisal is an independent professional valuation of real estate prepared for a separation, divorce or related family-law matter.
Unlike an estimate intended to market a property for sale, a professional appraisal provides a documented opinion of value supported by property research, comparable sales and recognized appraisal methodology.
A matrimonial appraisal may be useful when:
A couple is separating or divorcing
The value of the matrimonial home needs to be established
One spouse wants to remain in the home
One spouse is considering buying out the other's interest
The parties disagree about the property's value
A lawyer requires an independent property valuation
A historical property value is required
Multiple real estate assets are involved
The matter is proceeding through negotiation, mediation, arbitration or litigation
Why Property Value Matters During Separation or Divorce
Ontario's property equalization system considers the value of property in determining net family property for married spouses. Ontario's Family Law Act defines the valuation date and sets out the framework for equalization of net family property.
For real estate, establishing an appropriate market value can therefore be an important part of the overall financial picture.
The appraiser does not determine how property should be divided or calculate what one spouse owes another.
Instead, our role is to answer the real estate valuation question:
What is the property worth as of the required effective date?
Your family lawyer can determine how that valuation should be used within your particular separation or divorce.
What Is the Valuation Date?
The effective date is particularly important in matrimonial appraisal assignments.
Ontario's Family Law Act defines the “valuation date” and, in a typical separation situation, includes the date the spouses separate with no reasonable prospect that they will resume cohabitation. The legislation includes other circumstances as well, so the appropriate legal valuation date should be confirmed by your family lawyer.
This means the value required for a matrimonial matter may not necessarily be today's property value.
For example, if spouses separated several years ago, they may require an appraisal that determines what the property was worth at that earlier point in time.
Current Value vs. Historical Value
This is one of the most important distinctions in a divorce or matrimonial appraisal.
A current appraisal determines the property's market value as of a current effective date.
A retrospective appraisal develops an opinion of the property's market value as of a specified date in the past.
Depending on the circumstances, a matrimonial matter may require one or both types of valuation.
If a historical value is required, the appraiser researches market conditions and relevant comparable sales associated with the specified historical date.
This can be particularly important when the real estate market has changed significantly since the spouses separated.
What If One Spouse Wants to Keep the House?
Not every separation results in the matrimonial home being sold.
Sometimes one spouse wants to remain in the home and acquire the other spouse's interest.
In this situation, determining the property's value can become an important part of the negotiations.
An independent appraisal provides a neutral opinion of market value rather than relying on the amount one spouse believes the property is worth.
The appraisal does not determine the buyout amount itself. Ownership interests, mortgages, debts, equalization and other financial considerations should be addressed by the parties and their lawyers or financial advisors.
What If Both Spouses Disagree About the Value?
This is one of the reasons an independent appraisal can be particularly helpful.
One spouse may believe the home is worth $900,000 while the other believes it is worth $1 million.
Online estimates, current listings and opinions from friends or family can create even more confusion.
An independent appraiser does not have a financial interest in whether the property value is higher or lower.
The appraiser analyzes relevant market evidence and develops an independent opinion of value based on the property and the market.
That provides the parties and their lawyers with professional valuation evidence to consider during negotiations or other proceedings.
What Does a Matrimonial Property Appraisal Consider?
Every property is different.
Depending on the assignment, an appraisal may consider:
Property location
Neighbourhood characteristics
Lot size and utility
Building size and design
Age and condition
Quality of construction
Renovations and improvements
Bedrooms and bathrooms
Basement finish
Garage and parking
Outbuildings
Waterfront or rural characteristics
Zoning and land-use considerations
Relevant comparable sales
Market conditions as of the effective date
Other property-specific influences
The appraiser determines which factors and market evidence are most relevant to the particular property.
What If the Property Has Changed Since the Separation?
This can be an important issue when a historical valuation date is required.
Perhaps the kitchen was renovated after separation.
Maybe an addition was constructed.
The basement may have been finished.
The property may have deteriorated or undergone significant repairs.
When the required effective date is in the past, the appraiser may need information about the property's condition and characteristics as they existed at that time.
Available documentation may include historical photographs, listings, renovation records, permits, plans or other reliable property information.
The appropriate approach depends on the individual assignment and the information available.
More Than Just the Matrimonial Home
A separation or divorce may involve several real estate assets.
Depending on the assignment, matrimonial appraisal services may involve:
Single-family homes
Condominiums
Cottages and waterfront properties
Rental properties
Investment properties
Multi-residential properties
Commercial properties
Rural properties
Farms and agricultural properties
Vacant land
Mixed-use properties
Other real estate interests
Different property types may require different valuation approaches and levels of market analysis.
Can One Spouse Order the Appraisal?
Depending on the assignment, an appraisal may be requested by one of the parties or through a lawyer or other authorized client.
Regardless of who requests or pays for the appraisal, the appraiser's obligation is to provide an independent, unbiased and professionally supported opinion of value.
The value is not developed to favour the person who ordered the report.
That independence is especially important in matrimonial matters.
Working With Family Lawyers
We understand that divorce and separation matters may involve lawyers, mediators and other professional advisors.
Before beginning the appraisal, the intended use, intended users, property interest being valued and appropriate effective date should be clearly established.
When a lawyer is involved, it can be helpful to confirm these requirements before the appraisal begins.
The appraiser provides the real estate valuation expertise. Legal questions regarding equalization, ownership rights, the matrimonial home and the appropriate legal valuation date should be addressed by the parties' family-law professionals.
Frequently Asked Questions About Divorce & Matrimonial Appraisals
Do I need an appraisal during a divorce?
Not every separation requires a professional property appraisal. However, an independent appraisal can be useful when the value of real estate is important to negotiations, equalization, a proposed buyout or legal proceedings.
Can you determine what our house was worth when we separated?
Yes. When appropriate information is available, a retrospective appraisal can develop an opinion of market value as of a specified historical effective date.
Does the house have to be sold to determine its value?
No. A property can be professionally appraised even if neither spouse intends to sell it.
What if my spouse and I disagree about what the house is worth?
An independent appraisal provides an objective opinion of market value supported by relevant market evidence.
Can you appraise a cottage or rental property as part of a divorce?
Yes. Matrimonial appraisal assignments can involve many different types of real estate, not just the primary residence.
Can the same appraisal be used by both spouses?
That depends on how the appraisal assignment is established, including the client and intended users of the report. If both parties or their lawyers intend to rely on the appraisal, this should be discussed with the appraiser before the assignment begins.
Does the appraiser determine how much one spouse has to pay the other?
No. The appraisal provides an opinion of the property's value. The calculation of equalization payments, ownership interests and other legal or financial matters falls outside the appraiser's role.
Independent Valuation When Fairness Matters
Separation and divorce can already involve difficult financial and emotional decisions. Determining the value of real estate should not add unnecessary uncertainty.
An independent professional appraisal provides a clear and well-supported opinion of value based on market evidence rather than the interests of either party.
Whether you require the current value of a matrimonial home or the value of real estate as of a specified historical date, Cade Appraisals Inc. provides professional divorce and matrimonial appraisal services with an emphasis on independence, objectivity and clear reporting.
Need a Divorce or Matrimonial Appraisal?
Contact Cade Appraisals Inc. to discuss the property, required valuation date and purpose of the appraisal.