How Renovations and Design Upgrades Affect Property Division in a Divorce Case

Divorces are difficult and messy, no matter the circumstances. But when you introduce a complex property situation, that can cause the stress to escalate. After all, hard-earned assets, like homes and cars, can become a point of contention as each spouse vies for their fair share. That’s especially true when a home has been recently renovated. 

Read on as we discuss how property renovations and design upgrades can impact property value, as well as the division of property in a divorce case. 

Considering Homes in Divorce Situations

When a couple is navigating a divorce, they have to come to a determination about their home. This asset may be the largest one under consideration, too. But before a couple can decide who gets possession of the home or how to sell it, they need to know its value. If a home has been upgraded recently, for instance, it will be worth more. A newly redone kitchen, updated basement, or finished attic can boost a home’s value significantly. Even smaller upgrades, like fresh flooring or new light fixtures, can make a big difference. And a new cedar deck and upgraded landscaping can enhance curb appeal, which can add value, as well. How much value do these changes add? Unfortunately, it’s challenging to arrive at an exact number, which adds to the tension in divorce situations. 

The Impact of Renovations

Brand new appliances, a kitchen island, and refreshed bathrooms can increase the value of homes. Buyers may be willing to put in a higher bid if they see fresh backsplashes and newly tiled showers in a bathroom. Additionally, renovations that add square footage can be especially appealing to buyers. A finished basement may open up more gathering space, or an addition to the back of the home could add a bedroom. 

What is important to know, however, is that not all renovations yield an excellent return on the investment. A kitchen upgrade that hits $50,000 may not add that much to the home’s asking price, for instance. That’s why it’s important to work with a seasoned home appraiser to get an accurate estimate. They’ll understand current real estate market conditions and assess the quality of upgrades to help inform decisions during a divorce case. 

Seeking Legal Help

Handling a divorce is never easy, and property situations only complicate matters further. When you’re already dealing with emotional stress, parsing legal lingo and laws can feel overwhelming. If you live in Texas, reaching out to an experienced divorce attorney in League City can be a good first step in creating a smoother process.

An attorney will know your state’s regulations regarding marital property. While some states might mandate an even division of assets, others may not be as specific. An attorney will be able to guide you toward a reliable appraiser to ensure an accurate renovation value. They’ll also be able to give you advice regarding selling or retaining the home, given your circumstances.

Additionally, an attorney will negotiate on your behalf. They’ll advocate for your interests and work toward a fair conclusion. Your spouse might claim that the home is worth more than it is, for example. An attorney can help gather and piece together evidence. One spouse may claim that they financed more of the renovations than they actually did, or used money saved before the marriage. As a result, they may feel entitled to a larger share of the property. These situations can make fair property divisions even harder to achieve. Ultimately, a good attorney will work to protect your rights so all investments and claims regarding a renovation are transparent. 

Arriving at a Fair Conclusion

Renovating a home can improve its value and make the home more livable. But knowing how to divide that upgraded asset fairly in a divorce case can be tricky. One spouse may claim to have financed more of the renovation, or there could be disagreements about the value of the home. In any case, seeking legal help is a must for anyone hoping to reach a fair outcome. With the help of an appraiser and attorney, it’s possible to determine the impact of home renovations on a property’s value during a divorce.