Equipment Appraisal Blog | Understanding Machinery Appraisals

Recent Uptick in Divorce Cases - How Appraisers Assist in the Process

Posted by Equipment Appraisal Services on Mon, Nov 01, 2021 @ 07:00 AM

Machinery Equipment Appraisal Appraiser Divorce

It may be an anomaly brought about, in part, by the pandemic, or it might just be a coincidence. The fact is that we are seeing a lot more divorce cases happening in 2021 than in previous years. As a result, requests for valuation services in this arena have been on the rise.

Equipment and business appraisers have been busy working with divorce attorneys and their clients, as the age-old dispute between separated spouses revolves around a fair separation of assets. When both parties are co-owners in a business, there is going to be a need for an independent appraisal from an experienced valuation firm, which can look to assist in facilitating a settlement. If the shared business includes significant tangible assets, such as construction and manufacturing machinery, trucks and trailers, or any type of personal property, the need for an accredited machinery and equipment appraisal will be important. A certified business appraiser will then consider these tangible values in their overall analysis.

Appraisers act as unbiased neutral parties, providing a fair market value for your equipment and associated business. The intention is to put to rest the concerns either party may have in regard to prior assumptions or discussions on their company’s worth.

In certain cases, both sides in the divorce will engage their own appraisers with the potential for arbitration or litigation to determine the most credible report or allow consideration to both valuations if they are not too far apart. Regardless of the circumstances, it is important to engage with an accredited or certified appraiser with the experience and credentials to effectively assist in the process.

If the business is still operating and in decent financial shape, the Fair Market Value of the assets would be the appropriate measurement level. If the company has been recently idle, or there are plans to close up shop in the very near future, a liquidation premise may need consideration. Ideally, both parties are on the same page with the overall process, however, if this is not the case, the party who engaged the experienced appraiser should have an advantage in the ongoing proceedings.

Understanding all that is involved during a divorce, including the need for an accredited or certified equipment appraisal can ensure you are receiving the best settlement possible.

Tags: Divorce, equipment appraisers, Valuing Equipment for Divorce Purposes, Machinery & Equipment Appraisals

When to Consider Valuing Equipment for Divorce Purposes

Posted by Equipment Appraisal Services on Tue, Sep 04, 2018 @ 12:41 PM

In a divorce, spouses split marital assets. While you may think of this in reference to personal assets, it also refers to business assets. If you own a business, your spouse may be entitled to up to half of the business's worth. To determine this worth, equipment valuation for divorce purposes is essential. Here's what you can expect when getting business equipment valued in cases of divorce. 

Why Appraise Equipment Before a Divorce

During a divorce, you must split the marital assets with your soon to be ex spouse. While it may be easy enough to assess the value of your home or car, gauging the worth of your business assets is trickier. An appraiser can estimate the value of your business by comparing it to your closest competitors. Equipment valuation methods help an appraiser determine the fair market value of business equipment. From this valuation, a judge or mediator can determine how much money your spouse is entitled to, by law. 

Valuing equipment for divorce purposes is the easiest way to determine your spouse's allotment, but it also benefits you. You want lower appraisal values for equipment where your spouse will want higher values. An appraiser can fairly assess business equipment without favoring either side. 

Divorce cases often turn acrimonious as partners fight over division of property, child custody, and other matters. As these cases drag on, legal fees mount. So do stress and tension. By letting an appraiser determine the worth of your business and equipment, you can reduce your stress and save both time and money. 

What to Expect When Valuing Equipment for Divorce Purposes 

When you schedule an appraisal, a certified appraiser will come out to your business. They will inspect the premises and take photos or videos of your equipment. An appraiser might ask to see a maintenance log or note the make, model, and condition of your business assets. A skilled appraiser will be thorough in their inspection, taking even the small tools and furniture into account. 

The appraiser will then review this information, perform independent research, and deliver an equipment valuation which you can use for divorce purposes. 

You may use a single appraiser for divorce purposes or each party may retain their own appraiser. It depends on how amicable the divorce process is. 

It is essential that you hire a certified appraiser when taking equipment values for divorce, as an appraiser who is not certified is viewed as suspect by the court.

A dealer, auctioneer, or other party should be avoided for valuation as well, as they may not have an independent, unbiased opinion of equipment value. Consider that an auctioneer who lowballs your construction business assets -- reducing the amount of money you have to give your soon to be ex spouse -- may hope to make a tidy profit by buying the equipment off you for a song. 

Certified appraisers have experience conducting appraisals for legal purposes, and many have previous experience testifying under oath. If your appraiser has to take the stand, this comfort can make the difference between a valuation that stands up in court and one that crumbles under cross-examination. 

Start searching for a certified appraiser who understands your industry as soon as you know you will be getting divorced. This gives you time to identify the right person, who can value your equipment fairly and assist with the division of marital assets as required by law. 


Tags: Valuing Equipment for Divorce Purposes