Many couples in New Jersey own additional properties, such as homes or even commercial buildings, that they use to make additional income. In some cases, a real estate investment business can be so lucrative that the couple can devote their energy to it full time and make a very nice living from their rental income Also, the couple can make even more money by buying real estate when prices are low and selling the property during a hot real estate market, that is, when prices are high.
Even happily married couples need to have some idea of what these investment properties are worth, as knowing this information is simply good business practice. In the event of a high asset divorce, however, knowing these values can be critical, as it can mean the difference between receiving a fair share of marital property and winding up in dire financial straits.
Putting a value on investment property is a bit more difficult than doing so for one’s private residence. The reason is that, usually, the predominant question when valuing a private residence is what the property will sell for on the open market. With respect to investment property, however, one also has to estimate how much rental income the property will produce over time and then convert that potential income in to a lump sum.
There are several methods a New Jersey resident can use to value her investment properties, and a wise real estate investor will actually use a combination of these methods to estimate the value of her homes and commercial buildings.
However, when going through the process of a divorce, a person may need to enlist the help of an expert in order to put a monetary value on his or her properties, if only to be sure that the estimates hold up in front of a family law judge. Having the help of an experienced family law attorney is also a beneficial step for a real estate investor.