A previous post here discussed the divorce of a couple who both owned large portfolios of commercial real estate. Commercial real estate can include a number of different types of properties, including rental homes, apartments or office spaces, including high-rise buildings. Those who hold interest in commercial real estate could have properties worth millions or even billions of dollars.
During a high asset divorce or a permanent legal separation, it is important to make sure that commercial property is valued accurately and fairly. After all, an incorrect valuation could mean the difference between a fair settlement and a result that is lopsided in favor of one party.
Putting a value on a piece of commercial property can be tricky. For one, commercial property, especially buildings and office space, often has unique features and the possibility of being used in a number of different ways. These unique features make it hard to estimate the price of commercial real estate simply by comparing it to other similar properties which sold recently.
In fact, putting a value on a piece of commercial property often involves considering a number of factors besides just the price for which a similar property would sell. For instance, rental properties, both investment homes, and buildings alike, have ongoing income-producing potential. A good estimate of a property's value should account for this potential stream of income.
Getting the right value on a couple's real estate holdings is one of the most important steps of a complicated dissolution of marriage or, for that matter, a legal separation.
Tags: High Asset Divorce
Related Posts: Quietly navigating a high profile divorce, Some statistics about gray divorce, Issues related to dividing retirement plans, Divorce of real estate moguls serves as useful reminder
