Valuing Assets In Divorce During A Pandemic: Real Estate
In many divorce cases, the community’s highest valued asset is real estate. Whether it be the family home, an investment property, a commercial building, or a second home, it is quite common that the equity in these properties is used to achieve a fair division and either the proceeds or the home itself awarded equitably between spouses.
Can you rely on an appraisal that was done a few months ago? Should you put your home on the market right now? Should you obtain another appraisal? Do you have renters or commercial tenants? Will they be able to continue paying rent?
The pandemic will undoubtedly influence the real estate market, but the exact effect is unknown. There has been a decrease in new home listings, which is normally good for sellers. However, there has also been a decrease in buyer interest. https://www.forbes.com/sites/ellenparis/2020/04/02/the-latest-numbers-from-realtorcom-on-covid-19s-impact-on-the-residential-real-estate-market/#4c889cd610b2. Several factors are considered when determining the value of a home, demand being one of them. Interest rates are low, but the unemployment rate is high. Will people want to purchase a home even with an extremely low interest rate if they do not have job security?
This will affect every case differently. It is important to know the economy is changing and even experts can only pontificate as to what effect this will have on the housing market. More data will be required before anyone can predict the long-term effects to any degree of certainty, but we are adept at fashioning creative solutions that take these risks into account to allow parties to move on with their lives without feeling stuck by economic circumstance.
Our Family Law Group is available to assist you through these challenging times. Please contact us to schedule a telephone or video conference, via email to JasmineB@beresfordlaw.com or call our office at (425) 776-4100. We continue to serve our community with full remote capabilities.