How equipment is appraised in a divorce
When a divorce involves a closely held business, the machinery and equipment usually needs its own appraisal, separate from the business valuation: an independent, USPAP-compliant report, typically at fair market value as of an effective date set by the parties or the court. Lukes & Lukes is an independent Machinery & Equipment (M&E) appraisal firm; every report is prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA), independently reviewed, and written to hold up in negotiation or testimony.
By Jared Lukes · CEO & lead appraiser · June 1, 2026 · Reviewed by Jesse Lukes
Why the equipment gets appraised
Dividing marital assets starts with a credible value for what the parties own. When one of those assets is a business that runs on equipment, a dental practice, an auto shop, a machine shop, a fleet, the machinery can be a large share of the marital estate, and it is usually appraised on its own. A spouse's guess and a dealer's trade-in number fail the same test: neither is independent, and neither is documented. An independent M&E appraisal gives both sides one figure they can negotiate from.
The effective date matters
Value is not a single timeless number; it is as of a date. Divorce matters turn on a specific effective date set by the parties or the court, for example the date of separation or filing. The appraisal develops value as of that date and says so plainly. Two correct appraisals of the same equipment can differ simply because they use different effective dates, so the date is settled before the work begins.
Which premise of value applies
Most divorce work uses fair market value, the price between a willing buyer and a willing seller, neither under compulsion. Depending on the facts, other premises can be relevant, and counsel may direct which standard of value the jurisdiction expects. We confirm the premise and effective date before we begin, so the report answers the question the matter actually presents.
Independence and a defensible file
The value has to survive review by opposing counsel and, if the matter goes that far, by the court. That calls for an appraiser independent of both parties, working under USPAP, who verifies the assets and documents the reasoning item by item. We work alongside the attorneys and accountants on the matter, prepare the report to hold up under examination, and never quote a number sight-unseen.
Common questions
Answers, up front.
What value is used for equipment in a divorce?
Usually fair market value, the price between a willing buyer and seller, neither under compulsion, as of a specific effective date. Depending on the facts and the jurisdiction, counsel may direct a different standard of value. We confirm the premise and date before starting.
Why does the effective date matter?
Because value is always as of a date. Divorce matters use a specific date, such as separation or filing, and the appraisal develops value as of that date. The same equipment can carry different values on different dates, so the date is set at the outset.
Do you work with attorneys and CPAs?
Yes. We prepare independent, USPAP-compliant reports built to withstand review, and we coordinate with counsel and accountants so the appraisal fits the matter and the standard of value it requires.