What is an Asset Division as it applies to Real Estate?

Residential homes are often owned by multiple parties. In this type of ownership, the owners each have a partial interest. If the 100% value of the asset is spread out among multiple owners, then an appraisal may be obtained to determine the partial interest value.

When one of the owners wants to purchase another's partial interest, this is known as a partial interest buyout. An Asset Division Appraisal is typically performed by a Certified Residential Appraiser to determine the fair market value of the asset. The interest in the asset can then be divided to determine what a fair buyout price would be. A common example of an Asset Division occurs during a divorce since the value of the property is usually included in the marital assets.