Divorce Appraisals in San Antonio

A divorce or asset division appraisal is not the same as a lender’s appraisal, even when both involve the same property.

A private appraisal for divorce is prepared to help the parties, attorneys, or mediator determine a credible value for the case. It may be used for negotiation, mediation, settlement discussions, or other decisions related to dividing real estate interests.

A bank appraisal serves a different purpose. It is ordered for the lender, not for the parties, and helps the lender evaluate whether the property provides adequate collateral support for the loan being considered. In simple terms, it helps the bank assess lending risk, not resolve the value issues involved in a divorce.

That is why some situations require two separate appraisals. For example, the parties may need one appraisal to help determine a fair value for buyout or settlement purposes. Later, if one spouse refinances to keep the home, the lender will usually require its own appraisal for the new loan.
In some cases, a divorce appraisal may also need to reflect a specific prior date, such as the date of separation or filing, while a lender appraisal is typically focused on current market value for mortgage purposes.

The simplest way to think about it is this: one appraisal is for the needs of the case, the other is for the needs of the bank.

In divorce appraisal assignments, the opinion of value depends on the effective date of the appraisal. In some cases, a current market value is needed. In others, the appraisal must reflect the property’s value as of an earlier date that is relevant to the matter.

Because the effective date can materially affect the value conclusion, it should be identified before the assignment begins. If an attorney is involved, that date is typically determined as part of the legal strategy or case needs.

A current market value appraisal reflects the property’s value as of today’s date. This is often useful for present-day negotiations, buyout discussions, settlement planning, or other situations where the parties need to understand the home’s value in the current market.

A retrospective appraisal reflects the property’s value as of a prior date rather than the present. In divorce matters, that prior date may be the date of separation, the date of filing, or another date identified by the client or attorney as relevant to the case.

The appraiser does not choose which retrospective date applies. That decision should be made by the client or attorney before the assignment begins. Unless specifically requested otherwise, the appraisal is developed for one effective date only, not multiple dates.