The value of property during division

The value of property during division

One of the mandatory procedures in the process of termination of marriage is the determination of the value of the property subject to division. This is common property, which, according to the general rule, is divided equally between the divorcing parties (if a marriage contract was not drawn up). It is necessary to determine such value for:

• correct calculation of the state fee that must be paid when filing a claim in court.
• more accurate division of property.

It is necessary to divide different types of property, but mainly housing (apartment or house), land, car (or other movable property).

For each of these cases, there is a specific evaluation procedure that will be optimal in terms of cost.

The corresponding assessment must be proven in court with the mandatory provision of a document certifying the correctness of the stated value of a particular property.

Why is the value of property determined during division?

As is known, spouses to dissolve a marriage, have the right to file a claim with a demand for the division of jointly acquired property. The property belonging to each of the spouses is his/her property and is not subject to distribution (Family Code). Of course, issues related to the division of property can be established in a marriage contract, guided by the chapter of the Family Code. However, if such an agreement was not concluded, then the property will have to be divided in court.

The determination of the value of property during distribution in court is carried out for the following purposes:

• clarification of the amount of state duty;
• for direct distribution of property between spouses

Determining the value of property during division: statement of claim to the court

Next, we will consider the reasons for the need to determine the cost of each of the above points.

Filing a claim in court requires payment of the appropriate state fee. This mandatory rule is established by the Civil Procedure Code (hereinafter referred to as the CPC). In addition, the CPC, which establishes a list of documents that must be attached to the statement of claim, obliges the plaintiff to provide a document confirming payment of the state fee. The state fee in this case is determined according to the rules.

According to the above provision, the amount of the state fee is determined as a percentage of the price of the claim (Civil Procedure Code of Ukraine). Thus, the higher the value of the property subject to division, the higher the state fee.

Therefore, it is so important to determine the value of the property as correctly as possible, so as not to overpay for such legal costs.

In addition, as already noted, such a determination of value is significant for the direct distribution of common property. Based on the Family Code, jointly acquired property is divided equally, that is, the shares of each of the spouses are, as a general rule, equal. But, in order to divide such property, you need to know its specific value (for example, if the spouses do not want to divide the property in kind or the thing is indivisible). That is why, in this case, it is absolutely impossible to do without clarifying the price of such things.

Should the defendant prove the value when dividing property?

After the plaintiff has filed a claim with the court and the defendant has been duly notified, he has the right to file a counterclaim (Civil Procedure Code of Ukraine). In addition, directly in the court proceedings, the defendant has the right to declare a claim that the calculation of the cost made by the plaintiff was invalid. In this case, it is necessary to provide your calculation, attaching documents that could confirm this.

The defendant has the right to appeal the value of the common property declared by the plaintiff. The defendant may agree with the declared value, but he may also object, only in this case it is necessary to prove his proposed value.

Inventory value of a house during property distribution

Inventory value is the estimated value of housing (i.e., a house or apartment), according to the conclusion of an appraiser from the Bureau of Technical Inventory (hereinafter BTI). Such value is calculated based on the following indicators:

• area of ​​housing;
• various utilities;
• year of construction of housing (directly a private house or an apartment building in which the apartment is located);
• prices for construction products, work, and services.

This value is much lower than the market value, since many indicators (factors) affecting the value of real estate are not taken into account (for example, the location of the house, etc.). In this case, it is better to go to court, providing for consideration the inventory value (thus, the state fee will be significantly lower, which is certainly in the hands of the plaintiff). But, as we know, one statement and indication of the price of the claim (on which the fee will be calculated) will not be enough. A document proving such value is required.

The document confirming the inventory value is a certificate from the BTI. It is provided only to the owner of the property, after his direct application to the BTI (located at the place of residence of the applicant).

Documents for determining the value of an apartment during division of property

In order to obtain a certificate, you must provide the following to the relevant BTI:

• an application stating a request to issue such a certificate;
• a certificate of ownership of a house or apartment;
• a ​​document confirming the identity of the applicant (passport).

After this, a date for issuing such a certificate is set. It should be noted that it is issued on a paid basis. If the indicated inventory value is calculated incorrectly, it can be appealed in court. To do this, it will be necessary to involve an independent appraiser who will make a new calculation.

It should be concluded that the inventory value will be more advantageous for filing a claim in court, since the price of the claim will be much lower (after all, such value is lower than the market value), which means that the state fee will also be lower.

The cost of a land plot during the division of property

• The value of a land plot is determined by means of its cadastral valuation. This fact is established by the Land Code, which refers to the Law of Ukraine from… Law of Ukraine “On valuation activities in Ukraine”. In general, issues related to such a process are specified in the section.
• The specific procedure for conducting such an assessment is specified in the rules established by the Resolution of the Government of Ukraine No. “On approval of the Rules for conducting state cadastral valuation of lands”.

The cadastral assessment is organized by the Federal Agency for Real Estate Cadastral and its territorial bodies. This body engages specific appraisers who determine the cadastral value of the plot. After the assessment, a corresponding certificate is issued indicating the cost of the plot.

In addition, the site has a special public map where you can clarify the cadastral value of any established land plot, find out the purpose of the land and its permitted use. It also indicates the service organization, its address and telephone number. This function is convenient for preliminary clarification of the price, however, to apply to the court, you must provide an official document (certificate), that is, the site data is for reference only.

It should be noted that the cadastral value is somewhat lower than the market value, therefore, in order to reduce the price of the claim for a lower payment of the state fee when applying to the court with a request to distribute such a land plot, it is necessary to indicate exactly this value with the mandatory attachment of a document confirming the value (certificate).

Valuation of a car and other movable property during distribution

More often, a situation occurs when a man and a woman cannot agree that a car or other movable property will remain with one of the spouses, and accordingly decide to divide this property. And since this property is not subject to division in kind, it is sold at auction and the proceeds are divided between the divorcing spouses. In addition, a situation may arise when it is necessary to determine the value of a car in order to transfer it to one man, and leave other property for the same amount to the other.

In this case, there are two ways to determine the value of a car. The plaintiff can independently determine the value, taking into account the following factors:

• year of car production;
• market value of a new car;
• wear and tear and other defects;
• obsolescence.

In such a case, the court may be guided by the assessment provided by the plaintiff, but the defendant may agree with this and appeal the proposed assessment.

To use the second method of assessing the value of a car, it is necessary to involve an appraiser who will determine such value, issuing the relevant document. In this case, the assessment will be proven, and the assessment certificate will be evidence that must be added to the claim.

The appraiser, accordingly, is an individual who is a member of a self-regulatory organization of appraisers. It is to such an organization that you should apply for a property appraisal.

The value of property when divided between spouses: judicial practice

Example

The Tsvetkov spouses are dissolving their marriage in court. They decided to divide their jointly acquired property – a car that was bought with common money during the marriage. They decided to leave the Tsvetkov car with the man and transfer household appliances to the wife in the amount of the car’s value. To do this, they went to court, but first had the car assessed. An independent appraiser made an assessment, based on the results of which he issued the Tsvetkovs a certificate of the car’s value

After this, the court left the car with Tsvetkov and transferred household appliances equal in value to the car to Tsvetkova. That is, in this case, the court agreed with the evidence presented and took it into account when making a decision on the case.

Thus, there are two ways to assess the value of a car: by indicating the value by the plaintiff, which is calculated independently, or by contacting an appraiser. The disadvantage of the latter method is that such an assessment is paid.

Lawyer’s Answers on the Value of Property During Distribution

Determining the value of property during division during divorce

Determining the value of property during its division is necessary to clarify the price of the claim, from which the state fee is calculated. In addition, such determination is necessary in order to correctly and equally (if the chapter is in accordance with the law, and not the agreement) divide the property between the spouses.

When dividing a house or apartment, it is best to use the inventory value determined by the BTI appraiser. If a land plot is to be divided, it will be more advantageous to take into account the cadastral value. But if a car or other property is being divided, then there are two options – an independent assessment or the involvement of a special appraiser.

Thus, in matters related to determining the value of property, it is necessary to be guided by the principle of benefit to oneself when choosing the method of such an assessment. The market value of such property may be too high, which means that the state duty will be significantly higher. This only means that it is necessary to look for other options for determining the price, which will be lower in cost.