Divorce Appraisal Work

[Joe Gomberg]

I dont have any exp. in divorce matters since I've never been in one or done any appraisals for people currently going thru one. My questions pertain to the appraisal side of things naturally;

Can either the husband or wife order the appraisal? Or should one of the lawyers order the appraisal?

Do both parties, at some point in time, get a copy of the appraisal if they are not listed as the client?

If one spouse is the client, wouldnt the other spouse have legal rights to see the appraisal as well, even if not mentioned by name in the appraisal?

Any feedback is welcomed...

 

[Red Blumenstock]

Joe,

It is probably better to have the attorney order the appraisal. Name him/her as the only intended user and let him/her distribute it if that is their desire. Others may order the appraisal but they then become the client.

As you get experienced and if the attorneys get familiar with your work, there may come a time when both attorneys will select you and each will pay half the fee. In that case, make sure you discuss this with the attorney ordering the appraisal and determine at the time of the assignment who are the clients and who are the intended users. If both are intended users state that, and add that "no other user is intended".

This was the subject of a strong discussion at the USPAP Instructor Clinic that I attended. According to Danny Wiley, ASB Chair, "Just because someone else sees the appraisal, they do not become an intended user", and that applies even though you know the
report will be subject to "discovery". That does not make the other attorney an intended user if you have identified the intended users at the time of the assignment and include only those persons as intended users in the report.

Good luck. This is an interesting part of an appraiser's work.

 

[Walter Kirk]

Anyone can order an appraisal and anyone can pay for it (very important).
It is better for all concerned if the attorney hires you, in that case anything you see or write is covered by attorney-client privilege and no one may use the report or even question you about it without the attorney's consent.

 

[TC]

Always get paid at the door!!!

TC

 

[Oregon Doug]

Joe - this an interesting and stable appraisal business - couples get divorced no matter what the interest rate is.

Anyone can order an appraisal but try to have one of the attorneys actually place the order - it 's much better for you if the attorney is your client. He can then determine who gets a copy and if anyone questions you about the property/appraisal - send them off to him for answers.

Usually there is no trial work involved in a simple divorce but there can be. Make sure that the attorney is aware that any pre-trial consultation and trial work will be billed on a per/hour consulting basis and is seperate from the appraisal fee.

Oregon Doug

 

[Tim Hicks (Texas)]

I personally don't like divorce appraisals. It seems that one party wants a high appraisal and the other wants a low appraisal. You do your job and shoot it straight, then one side or both sides decide to get a "rebuttal" appraisal to suit their case. I have never had to go to court to defend my appraisal, but I have had plenty of complaints for the mad side and pats on the back from the happy side and I end up wishing I had never met either. Plus, I never trust lawyers.


Oh, I also get sick of hearing the "true story" from both sides that has nothing to do with my assignment.

 

[xm39hnu]

1. Get paid for the appraisal up front; lawyers are hard to collect from, whether "your side" wins or not.
2. Be careful not to encroach into advocacy for "your side;" remain impartial.
3. Discuss the engagement with the attorney. If the attorney engages you, the results of the assignment are attorney work product and are not available to the other side during discovery. Any inquiries from anyone other than the attorney (client) should be met with, "I neither admit nor deny having performed an appraisal on that property." If you admit that you did, then you and the report can be subpoenaed. Maintain that stance regardless of whether you had a 30-minute conversation with the individual during the inspection. If you never admit that you've done an appraisal, then it cannot be subpoenaed. Give consideration to using a verbal report. (N.B.: Make sure all requirements of SR2 are met.)
4. Use an engagement letter, signed by the attorney who is engaging you. Set forth the complete anticipated scope of work to be performed. Get a specific statement of the use to which the appraisal will be put. Specifically cite your charges for appearance at court or deposition (Phrase it that way. Don't use "charges for testimony" because you'll be asked whether you're being paid for your testimony. You're not. You'll be paid for your opinion.) Get the letter signed by the attorney.
5. Get the fee for appraisal up front. I know, I've already said that. But I can't say it enough. If appearance is required, get a retainer in advance which will cover anticipated time. As it is used up, demand additional retainer money.

 

[Joe Gomberg]

Great information! Thanks for all who replied.

Sounds like lawyers dont like paying their bills...

Is it common to do trial work? 1 in 5 ? 1 in 30? What is a reasonable amount to charge for this time as well as a reasonable retainer? Some examples of what you are quoting will work fine.

Thanks again.

 

[xm39hnu]

I'm sorry if I seemed to imply that attorneys were somehow dishonorable, and would deliberately stiff you for a fee. Most of the attorneys I've met are very scrupulous; they won't willingly engage in fraud or chicanery, for the same reasons that we won't. They are, for the most part, principled. During a trial, they're extremely focused. After the trial, they're tightly focused on the next one. Trivial details like paying the light bill escape them, unless their secretaries take care of it. That's why you get your fee up front--because they're busy, and what is behind them is not important.

So get your fee up front, avoid hard feelings, and perhaps make a friend and ally in the process.

What to charge? Well, how good are you? Do you have an extensive CV with several teaching posts, book authorships, magazine articles, and government postings to your credit? Charge a small fortune, because you're worth it. Don't have much of that? Tell the attorney you have no experience as an expert witness, but that you'd like to learn. What would you charge the attorney to teach him appraisal techniques? What do you think he should charge to teach you courtroom techniques? Consider doing a couple of freebies to get the experience in the witness chair, if that's what it takes. (Free court appearance, not free appraisals.)

To give you an idea of rates, I quote $150/hr portal-to-portal, plus expenses, for limited experience as a witness (negotiable). (We did our first one at $50/hr flat for a divorce.) I know a highly experienced MAI who gets $1,500/day or portion, portal to portal, plus expenses, payable in advance. He also commands a retainer over and above that fee to compensate him when he's likely to have to turn down other business due to conflicts of interest. He teaches appraisal courses, either to appraisers or to juries. That's part of the job of the expert witness, to be able to show the jury what you did, and why it's the right way to do it; in short, you teach a short course in the appraisal approaches. Know'em cold, though, because then comes cross examination. That's where you prove your worth.

 

[Pam Wyant]

I've done maybe a couple of dozen divorce appraisals. I've been hired by him, her, or the attorney, and occassionally by both parties who split the fee. Just be careful to disclose who the client is. I think it is a little difficult to state that only the person who hired you is an intended user. You know up front it's a divorce, so you know the other party, both attorney's, the judge, and others involved in the court system (jury, lawmaster, etc) may be using this report to make a determination of how to split the marital property. A case could be made that the other party won't be relying on your value, they may get there own appraisal, but a judge or jury certainly will, so I believe that would make them an intended user. This is similar in the loan process - the borrower isn't an intended user, but others involved in the mortgage process are, such as underwriters.

Avoid discussing anticipated value with either party. Carefully analyze and try to confirm anything either party tells you. The one wanting to buy the property out (usually the one in residence and therefore often the one at the inspection) will usually try to tell you every little thing that could possibly be wrong with the property.

If either of the parties is ordering the appraisal directly I collect up front. If it's an attorney, I usually bill and have never had a problem collecting.

Oddly enough, I have yet to go to court to testify in a divorce case. I do state my fee for court appearance up front (from the time I leave the office to the time I return). I sometimes run into cases where the bank orders an appraisal and the customer is getting the loan to buy out a spouse in a divorce. In these cases, I make it clear the bank is my client and that I will not testify in court about the report.

I usually charge a bit more for a divorce appraisal than my typical fee for a loan, because of risk.

Pam