UAD 3.6: What Divorcing Homeowners and Family Law Attorneys Need to Know About Upcoming Appraisal Changes

If you've worked with me before, you've probably heard me say:

"An appraisal and market value are not always the same thing."

Sometimes people assume those terms are interchangeable. They're not.

And with significant changes coming to the appraisal industry in November 2026, understanding the difference may become even more important for divorcing homeowners and the professionals advising them.

What Is UAD 3.6?

UAD stands for Uniform Appraisal Dataset.

Beginning in November 2026, Fannie Mae and Freddie Mac will require residential appraisals to be completed using a new reporting framework known as UAD 3.6. The update is designed to create more consistent reporting, improve data quality, and modernize how appraisals are delivered and reviewed.

For most homeowners, these changes will happen behind the scenes. However, any time an industry adopts a new system, there can be a period of adjustment while lenders, appraisers, underwriters, and real estate professionals adapt to the new process.

Why This Matters During Divorce

For many divorcing couples, the marital home is the largest asset they own.

The home's value often impacts:

• Equity buyouts
• Refinancing decisions
• Settlement negotiations
• Property division
• Future housing decisions

When significant financial decisions are being made, understanding what type of value is being measured becomes critically important.

Appraised Value vs. Market Value

This is where things get interesting.

An appraisal is typically prepared to support a lending decision. Its primary purpose is to help a lender evaluate risk.

Market value, on the other hand, reflects what a willing buyer is likely to pay in the current marketplace under current market conditions.

Most of the time these numbers are relatively close.

Sometimes they are not.

This is particularly true when:

• Inventory levels are changing rapidly
• Homes have unique features
• Significant updates or deferred maintenance exist
• Buyer demand is shifting
• The property would benefit from strategic preparation before listing

In these situations, a detailed Comparative Market Analysis (CMA) prepared by an experienced local market expert can provide valuable insight into how buyers are currently behaving in the marketplace.

The Question That Matters Most

Before relying on any valuation, I encourage attorneys and homeowners alike to ask:

Are we solving for lending value or market value?

Those are not always the same conversation.

If the goal is to refinance and remove a spouse from the mortgage, an appraisal may be the appropriate valuation tool.

If the goal is to understand what a home may realistically sell for on the open market, a comprehensive market analysis may provide additional insights that are equally important.

Understanding the purpose behind the valuation is often just as important as understanding the number itself.

What Family Law Attorneys Should Consider

As lenders, appraisers, and underwriters adapt to UAD 3.6, there may be periods where additional clarification, revisions, or processing delays occur.

For divorcing homeowners, those delays can impact:

• Refinancing timelines
• Equity buyout calculations
• Settlement negotiations
• Deadlines established within a Judgment of Divorce

Attorneys who understand the distinction between lending value and market value are often better positioned to help clients make informed decisions regarding one of their largest assets.

Oakland County Divorce Real Estate Expertise

While valuation issues can arise anywhere, I frequently assist divorcing homeowners, family law attorneys, mediators, and financial professionals throughout Oakland County, including Rochester Hills, Birmingham, Bloomfield Hills, Troy, Royal Oak, Berkley, Auburn Hills, and surrounding Southeast Michigan communities.

As a Certified Divorce Real Estate Expert (CDRE®), I work alongside divorce professionals to help clients understand their options regarding the marital home, whether the property will be sold, refinanced, or retained by one spouse.

Final Thoughts

UAD 3.6 will likely bring positive changes to the appraisal industry over time. Greater consistency and improved reporting are good for consumers and professionals alike.

However, no valuation tool should be viewed in isolation.

Whether a home will be refinanced, retained by one spouse, or sold on the open market, understanding the purpose behind the valuation is often just as important as the valuation itself.

Questions About the Value of a Marital Home?

Whether you're a homeowner, attorney, mediator, or financial professional, understanding the difference between appraised value and market value can be critical when making divorce-related real estate decisions.

Amy Osterbeck, CDRE®
Certified Divorce Real Estate Expert
Associate Broker

Serving Oakland County, Macomb County, and Southeast Michigan

📞 586-945-5323