Knute Rockne said "Win or lose, do it fairly."
There is a reason it's called "Personal" Property
I vividly remember my state trooper-escorted marital appraisal nine years ago. As we walked to the house, he looked at me with a hardened face and asked if this was the first time I had ever "needed security." It was. Although combative spouses attempting to divide assets can be challenging, this was the first and only police escort I have required. The day ended with both parties feeling satisfied that the appraisal would be thorough and fair. This scenario is unusual; nevertheless, when I walk into a private residence, I must be ready for anything. No matter the circumstances, a professional appraiser provides their clients with an unbiased straight forward valuation of personal property.
The Client's Preparation
During the division of marital personal property an appraisal is often needed to establish value to aid in the division of assets. In preparation for an appraisal the items should be identified as: marital property, pre-marital, inheritance, or gifts. Non-marital items may or may not be valued, however, marital property should be the only asset classification used for equitable distribution. One exception would be an expensive gift that was purchased as an investment for the couple.
For an efficient appraisal several preparatory steps are suggested. First, make sure valuable small items to be appraised are taken from drawers, closets and safes. These should be in plain sight on available open surfaces. Also, move antique furniture away from the wall to facilitate proper access. Good lighting is also important.
Room by Room
The process normally begins with a phone call from an attorney or an individual client. The appraiser makes an appointment to visit the residence (or two residences) and/or business location to perform a room by room inspection. This initial phase of the appraisal process includes an examination of items with detailed notes and photographs. Items such as furniture, art, antiques, guns, coins, rugs, vehicles, etc., are singularly described. This catalogue of the items provides the appraiser with the information necessary to proceed to the next steps of research and report preparation.
Research and Report
The appraiser uses a variety of resources to determine the "fair market value," defined as "the price at which the property would change hands between a willing buyer and a willing seller, neither being under the compulsion to buy or sell and both having reasonable knowledge of the relevant facts" (Dewees, 46). With the information gathered on-site, the appraiser researches the personal property using an extensive reference library which is constantly updated. On-line data bases, trade periodicals, and venues such as: auctions, antiques shops, coin and silver shops, and estate sales are essential references used by a certified appraiser to determine current values. In the case of an unusually challenging item, consultations with experts coast-to-coast may be necessary. This is not unlike the PBS television show, "Antiques Road Show."
Expert Witness
In the event that the findings of an appraisal report are challenged, a properly researched and documented appraisal report will stand up to scrutiny in a court of law. The appraiser must be prepared to express their opinions within a reasonable degree of certainty and disclose the underlying basis for their opinions.
A Business Based on Ethics
The integrity of an appraisal business is simple and it cultivates trust. There should be no suppression of facts or misrepresentation of qualifications and there will be no influence by third parties (Dewees, 85). I feel the steady growth of my business over the years is a reflection of the respectful, confidential and, above all, fair treatment of my clients. A recent e-mail from an attorney who regularly uses my appraisal service was kind enough to comment; "We settled, thanks in large part to not having to squabble over the little stuff . . . how simple this can all be with a proper valuation in place."
In addition to divorce appraisals, I am often hired to catalogue and appraise complete households or single items for insurance purposes. I also work with banks, trust and estate professionals (wealth management), heirs, and private clients across the state. My business, Lisa Lynn Appraisals, is based in Charleston and is certified state and nationwide. Designations: Certified Appraisal Guild of America, New England Appraisers Association, Co-Founder: (former) Charleston Antiques Academy, B.S. Mechanical Engineering.
About the Author:
Areas Supported:
Residential: Antiques - Art - Household Contents
Business: General Contents - Inventory - Equipment.
Phone: 304.549.2874
e-mail: [email protected]
On the web: www.lisalynnappraisals.com
Sources:
Dewees, Paul. Personal Property Appraiser's Handbook. St. Joseph, Missouri: Certified Appraiser's Guild of America, 1996.