Dividing your home and property during a divorce is a challenging task because you have to determine the value of your property and decide how to equitably divide it between you and your ex-spouse. If you want to get your fair share of a home or investment property, it’s important to understand how real estate is commonly valued.
Types of real estate valuation
There are numerous types of real estate valuation. They all primarily rest upon consideration of the type of property you have along with how much money that property could potentially be worth, such as by outright selling the property or renting it out for residential or commercial purposes.
Two of the most common types of valuation are the dividend discount model and discounted cash flow. The dividend discount model takes into account the value of a property based on the market return rate and any dividends the property can provide over the life of ownership. The discounted cash flow model, however, places the value of a property based on the amount of money it can bring in each month through rent and other profit-making endeavors. Each of these models can offer positives and negatives in the calculation of value for the purposes of property division. Prior to agreeing to a model, you may want to work with someone experienced in the field of law and real estate.
How experienced professionals help
The models behind the valuation of property often require experienced professionals to examine numerous factors. Asking for assistance from a lawyer who has experience with property division may help you get the most money for your share of the real estate.