Legal Definitions - appraise

To appraise means to formally assess and determine the monetary worth of an item, property, or asset. This process is typically carried out by a qualified expert, known as an appraiser, who uses specialized knowledge and methods to arrive at an objective valuation. The documented result of this assessment is called an appraisal. This valuation is crucial in various legal and financial situations where an accurate understanding of an asset's worth is required.

• Consider a situation where a family inherits a large collection of vintage comic books. Before deciding whether to sell them or divide them among family members, they might hire a specialist to appraise the collection. The appraiser would examine the rarity, condition, and market demand for each comic, providing a comprehensive report detailing the fair market value of the entire collection. This helps the family make informed decisions about the inheritance.

• When a small technology startup is seeking to attract investors, the founders might need to have their company appraised. A business valuation expert would analyze the company's financial performance, intellectual property, market potential, and assets to determine its overall worth. This appraisal provides a credible valuation that helps potential investors understand the company's financial standing and potential for growth.

• Imagine a couple going through a divorce who own a significant amount of valuable jewelry and watches. To ensure an equitable division of their marital assets, a court might order them to have these items appraised. A certified gemologist or jewelry appraiser would meticulously inspect each piece, considering its materials, craftsmanship, and current market value, to provide an unbiased assessment for the divorce settlement.