Fair Market Value
The price a willing buyer would pay a willing seller for an asset, with both having reasonable knowledge of the relevant facts.
Understanding Fair Market Value
Fair market value (FMV) is the standard used to value marital assets during divorce. Courts rely on FMV to ensure equitable division of property like homes, businesses, vehicles, and investments. Appraisals, comparable sales, and expert valuations are common methods for establishing FMV. Disagreements over FMV often lead to hiring competing appraisers, and the court may appoint its own expert to resolve disputes.
Real-World Examples
A home appraiser determined the fair market value of the marital home was $450,000, which became the basis for the buyout offer.
Related Terms
A professional assessment of a home's fair market value, typically required when dividing real estate in a divorce.
Marital PropertyAll assets and debts acquired by either spouse during the marriage, which are subject to division in divorce.
PartitionThe legal process of dividing jointly-owned property, either by physical division or by forced sale with proceeds split between the owners.
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This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.