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Divorce Appraisal Ethics

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Hi,

When I got divorced, my attorney made it a significant focus that the appraiser knew which attorney hired him and that it was a joint appraisal, but the appraiser did not know which client the attorney represented. Hence, when the appraisal happened, the appraiser did not know if I was represented by the attorney that hired him or the if the attorney that hired him was representing my ex.

I have a friend going through a divorce, and that principle does not seem to be on the radar for either of the attorneys in my friend's case. Not only does the appraiser know who is represented by which attorney, but the attorney and that attorney's client had extensive communication with the appraiser prior to the appraiser being hired.

Is there a written standard about this anywhere? Is there an industry practice when it comes to a joint appraisal that the appraiser should not know who is represented by the hiring attorney in order to preserve the credibility of the appraisal?

Thanks
Knowing which side the appraiser is working for doesn't create an ethical problem. In almost all our other work we understand who the client is, so there's nothing unusual or atypical about it also occurring in an appraisal for a divorce.

Simply being aware of what your client wants isn't inherently a problem either, even if they go to the trouble of trying to control the appraiser's opinions. Our role is to call it straight down the middle regardless of what anyone wants, including our own client. Now that's not to say that there aren't appraisers who break the rules and take sides despite knowing better; (regrettably) there are. That's one reason why it's not unusual for there to be two different appraisals for the court to review.

The courts are accustomed to the occurrence of conflicting expert opinions and sifting through them to see which appears most reasonable.
 
Hi,

When I got divorced, my attorney made it a significant focus that the appraiser knew which attorney hired him and that it was a joint appraisal, but the appraiser did not know which client the attorney represented. Hence, when the appraisal happened, the appraiser did not know if I was represented by the attorney that hired him or the if the attorney that hired him was representing my ex.

I have a friend going through a divorce, and that principle does not seem to be on the radar for either of the attorneys in my friend's case. Not only does the appraiser know who is represented by which attorney, but the attorney and that attorney's client had extensive communication with the appraiser prior to the appraiser being hired.

Is there a written standard about this anywhere? Is there an industry practice when it comes to a joint appraisal that the appraiser should not know who is represented by the hiring attorney in order to preserve the credibility of the appraisal?

Thanks
Integral to the involvement in many marital dissolution matters is the appraiser's responsibility to analyze and critique the appraisal obtained by opposing counsel, to provide information that his or her client can use to discredit the credibility of the appraiser/appraisal/expert testimony. Regarding your counsel's comments, A) sounds like counsel was determined to impress upon you his ill-understanding of the client-appraisal relationship; and b) like the AF has implied, it doesn't matter because theoretically-speaking the appraisal is objective.
 
Unfortunately its called billable hours, two years ago I did the estate appraisals for a local Family Law Attorney, who was well known in the community. Over the years I realized that 80% of all his clients were women and they all tended to brag about how hard he fought for them. He also had his all little gaggle of minions , otherwise known as hey my clients husband is a real dirt bag so get me some big numbers.

Funny: The one question I have been asked over the years is if I have ever been asked to do a low appraisal by anyone? I respond with yes probably 5 or 6 times and it was always requested by a scorned wife or lover who wanted to Bankrupt the no good dirt bag that she had caught cheating on her.

One was a Second or Third Trophy Wife of a Big Name Banker, who most everyone on here would know if I mentioned his name ( Clue ) he was Italian. She was a Hollywood Actress 25 plus years younger than him. Anyway his Trophy Wife's Attorney called me and I was all in until he mentioned what her last name was and I was like hey is that the actress and same wife of one of the biggest mortgage bankers in America ? The attorney says yes it's his sons wife. I am like OK but this is going to be a very large fee and paid COD. He says fine and gives me her contact number. Ring-Ring- Hello this is Such and Such -Hi MS -X I am the appraiser, She responds with Ok but first I have to tell you that his appraisal came in at around $6,000,000 and I want yours to be no more than $4,000,000. I am like Mrs-X it doesn't work that way, the value is whatever it is and- I cannot accept orders with pre-determined Values. She says fine sounds like my Husband or his minions have already paid you off and got to you . Then she says how much did he pay you to try and slip into my house ? I am like please I have never spoken to your husband much less received any payment from him or anyone else.

Anyway I called her attorney back and informed him that I could not accept the assignment. The attorney was cool and said no problem, I get it because She is a real high maintenance client but she also has a lot of money. This same attorney 20 years later ended up as a legal analyst at one of the major Los Angeles & New York Cable news channels.

P.S. I quit doing divorce or family law appraisals about 5 years ago, they can get real messy, and time consuming. I also only do Bankruptcy Appraisals when they are COD- Cash-no checks, no money orders hard cold cash.
As I've said, no amount of money could entice me to deal with the miasma that is dubiously called "Family Law". And I won't tell you what I personally think of attorneys who make their living swimming in those waters. :mad:
 
Is it a standard to protect the integrity of the appraisal a
Nope. Normally you would see two appraisers going tooth and nail, and both biased to their own client. That is an impact of the anchor bias perhaps more than anything else. I don't "do" divorce appraisals but I've been drug into court when a couple split the sheets and pulled out my old appraisal for a bank loan and subpoenaed me to court. In the end, I hoped their lawyers bankrupted them both. I don't know. The judge dismissed me half way thru the testimony. She was disgusted with both of the clowns. They were more interested in blasting each other than they were an equitable settlement. I would not do a divorce appraisal for less than $15K, because I bet the lawyers are charging north of 30K each. Surely I'm worth half what one of them are.
 
As I've said, no amount of money could entice me to deal with the miasma that is dubiously called "Family Law". And I won't tell you what I personally think of attorneys who make their living swimming in those waters. :mad:
Considering 50% of marriages end in divorce....
Who's going to represent the divorcing couple????
And what about the appraisers who provide appraisal services to the attorneys and courts????
 
Our role is to call it straight down the middle regardless of what anyone wants, including our own client. Now that's not to say that there aren't appraisers who break the rules and take sides despite knowing better; (regrettably) there are.
I agree with George's post above (and pretty much that entire post, but want to comment on this part)

No matter who pays us as an appraiser, our client is the person/entity that engages (asks) us to complete the appraisal assignment
We are to be independent, objective and unbiased
If the client(s) want to add anyone with whom we are able to discuss the appraisal with, that person(s) is named as an Intended User(s)

As an appraiser, we don't really care about anyone else's opinion, question(s), interest in our report except our client(s) or intended user(s)
 
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