Property Value and Potential Waste in Divorce

Whether a claim for “waste” exists — and whether it should ultimately be awarded — is a legal determination for counsel to argue and the Court to decide. However, if waste is broadly understood as the intentional reduction in the value of a marital asset, there are several real-world situations I often observe as a listing agent in divorce cases that may be worth noting.

In real estate, three primary elements influence value: timing, pricing, and presentation. When any of these factors are compromised, the market value of the property can suffer. Consider the following:

Timing: 

Homes, unlike many assets, tend to lose appeal the longer they remain unsold. Every market tracks an “Average Days on Market” metric that agents monitor closely. When a property exceeds that average, buyers often assume something is wrong with it and begin expecting a discount. If showings are repeatedly declined, offers are not properly considered, or the home is made difficult to access or unattractive to buyers, the listing may linger longer than necessary — which can negatively impact its perceived value.

Price: 

Most buyers search within specific price ranges. When a home is priced above what the market supports, it may not appear in the searches of the right buyers and can easily be overlooked. If one party insists on listing the property above market value or declines to approve reasonable price adjustments when the market calls for them, the home can remain unsold longer than it should, often resulting in eventual price reductions and diminished value.

Presentation: 

Buyers paying top dollar typically expect a home that feels clean, bright, and well cared for. Ideally, it is decluttered, neutralized, and inviting — similar to a staged or model home. When buyers instead encounter a home that is dark, unclean, heavily personalized, or poorly maintained, many will lose interest immediately. Those who remain interested often submit offers reflecting the condition rather than the home’s potential value, which frequently results in lower offers.

In divorce-related listings, the spouse occupying the home can have significant influence over both access and condition. This individual often controls showings and the day-to-day upkeep of the property, while both parties typically share decision-making authority regarding pricing. When showings are routinely declined or the property is not maintained in a marketable condition, the value of the home — and the equity available to both parties — can decline.

Additional behaviors can also affect buyer perception. For example, discussing the divorce with prospective buyers, overstating problems with the property, allowing pets to roam freely during showings, neglecting landscaping, or failing to maintain features like pools can create negative impressions that impact offers.

If you suspect that the property’s value may be affected in this way during a case, it can be helpful to request documentation from the listing agent. A written report outlining the agent’s recommendations, the parties’ responses, and a comparison between the property’s “as-is” value and its value if recommended improvements were followed can provide useful context. Buyer feedback from showings may also provide additional insight.

One final consideration: openly advertising that the property is being sold as part of a divorce can sometimes attract opportunistic buyers who assume the parties are motivated to sell quickly, which may lead to lower offers.

My goal in these situations is always to help preserve and maximize the value and equity in the property for both parties. Please feel free to reach out if you have questions or would like to discuss a case involving the listing and sale of real property.