How Appraisal Disputes Delay Settlements (and How to Avoid It)

In family law matters involving real estate, valuation is often expected to be a straightforward step in the process.

But in practice, it can quickly become one of the main causes of delay.

When appraisal disputes arise, they tend to shift focus away from resolution and toward defending or challenging a number—slowing progress and increasing costs for both parties.

So why do these disputes cause such delays—and more importantly, how can they be avoided?

1. When Value Becomes the Central Issue

In many separation files, once there is disagreement over value:

• Negotiations stall

• Attention shifts to the appraisal itself

• Progress depends on resolving the discrepancy

Instead of moving forward, both sides become focused on which valuation is “correct”.

At this stage, even small differences can become major obstacles.

2. The “Two Appraisal” Problem

One of the most common scenarios is:

• One party obtains an appraisal

• The other side questions it

• A second appraisal is ordered

Now there are:

• Two reports

• Two different values

• Two competing interpretations

Reconciling these differences often takes time—and sometimes leads to further expert involvement.

3. Time Lost in Review and Challenge

Once multiple reports are involved, additional time is spent on:

• Reviewing and comparing appraisal methodologies

• Identifying differences in comparables and adjustments

• Preparing responses or rebuttals

Even when both reports are reasonable, this process can extend timelines significantly.

4. Increased Legal and Expert Costs

Appraisal disputes don’t just delay files—they increase costs.

Additional expenses may include:

• Second appraisal fees

• Time spent by counsel reviewing reports

• Potential expert consultation or testimony

What could have been resolved early becomes a more complex and costly issue.

5. Loss of Momentum in Negotiations

Perhaps the most overlooked impact is the loss of momentum.

Once a dispute arises:

• Discussions become more cautious

• Parties become less flexible

• Resolution takes longer

In many cases, valuation disputes create friction that extends beyond the appraisal itself.

6. Why Some Appraisals Are More Likely to Be Disputed

Not all appraisal reports carry the same level of credibility.

Reports are more likely to be challenged when they:

• Lack clear explanation or transparency

• Use questionable or poorly matched comparable sales

• Apply inconsistent or unsupported adjustments

• Appear rushed or overly simplified

In many cases, it’s not just the value—it’s how well the value is supported.

7. How to Reduce the Risk of Appraisal Disputes

While not all disagreements can be avoided, many can be reduced by taking a more structured approach early in the file:

Retain a Neutral or Joint Appraiser

A jointly retained appraiser is more likely to be viewed as independent, reducing initial skepticism.

Clearly Define the Effective Date

Ensuring both parties are working from the same valuation date avoids unnecessary discrepancies.

Use an Appraiser Experienced in Legal Matters

An appraiser familiar with litigation-sensitive assignments is more likely to produce a report that anticipates scrutiny.

Focus on Defensibility, Not Just Speed

A well-supported appraisal may take slightly more effort upfront—but often saves time later.

8. Professional Standards and Credibility

In Canada, appraisal reports prepared in accordance with the Appraisal Institute of Canada and compliant with CUSPAP tend to carry greater credibility.

This contributes to:

• Increased confidence in the valuation

• Reduced likelihood of challenge

• Smoother progression of the file

Final Thoughts

Appraisal disputes don’t just affect valuation—they affect timelines, costs, and the overall progress of a file.

While disagreements are sometimes unavoidable, many delays can be reduced by ensuring that the appraisal process is handled carefully from the outset.

In family law matters, the goal isn’t just to determine value—it’s to establish a value that can be relied upon and accepted, allowing the file to move forward efficiently.