Equitable Distribution Appraisal Services
What is an equitable distribution appraisal?
If you’ve ever had to split things up fairly between people, you know how difficult it can be. And as you watch those diners split hairs over exact change, you can begin to get an idea of just how attached we can sometimes be to getting it exactly right down to the last penny.
An equitable distribution appraisal is not terribly different from providing the individual diners with a way to split the cost of a shared meal in a fair and equitable manner. More technically speaking, an equitable distribution appraisal seeks to establish a just and fair distribution of property once jointly held, or a just and fair compensation in the absence of that possibility. And as you watch those diners spit hairs over the exact change, you can begin to get an idea of just how attached we can sometimes be to exactitude! Imagine the scale of the difficulty as the value of the items at stake become significantly higher!
When do you need an equitable distribution appraisal?
You may need an equitable distribution appraisal if you and the other party(ies) can’t decide how to split up the property yourselves regardless of its value without some outside assistance.
Common situations in which this occurs are:
When You Are Getting a Divorce
In this case, the court may wish to know the fair market value, the net value, or some other definition of value of the marital property once owned jointly by you and your spouse. The type of value used is dictated by your state of residence and varies jurisdiction by jurisdiction. The definition of marital property also varies by jurisdiction but is typically based on whether your state is a community property state or a common law state. It is important to know the specific laws that govern the distribution of marital property in your state.
When You are a Beneficiary of a Shared Estate
Even if the estate does not require an appraisal for IRS estate tax purposes, you and the other beneficiaries sometimes need help with dividing up the inherited property. Is Mom’s heirloom china service a fair trade for Dad’s train set? The value of the items involved can be large or small and the value definition used may be fair market value, market value or liquidation value.
When You Sever a Business Partnership or a Business Fails
In these cases, the equitable distribution appraisal contains business property such as furniture, fixtures and equipment. If the business is being dissolved, all such items may need to be auctioned off fairly quickly and an orderly liquidation value may be sought. If one partner is buying out the interests of the other, the purpose of the appraisal will be to determine the monetary equivalent to be paid to the exiting partner. Often the value definition is based on value in place which considers the worth of the property to the owner because of its contribution to the business.
Working with us
Sometimes you may be the one who initiates the conversation with WorthWise to assist with the equitable distribution appraisal. Other times, we may be called in by another individual involved in the situation, a lawyer or mediator representing one or all of recipients, or by court order if the case is involved in litigation.
These kinds of situations can be emotionally charged as well as technically complex. At WorthWise, we understand such pressures and are committed to listening and communicating with respect while maintaining our professionalism, objectivity and neutrality.