Standard procedure in most property settlement agreements is to arrive at a value of the property through an appraisal of the property by a qualified appraiser. That approach to value will certainly suffice in the case of a non-investment property, such as a residence.However in the case of an income producing property, an appraisal might be considered a first step in arriving at value...and such an appraisal should be performed by an MAI, the highest achievable professional status in the field of appraising. Such an appraisal report would demonstrate what similar properties have sold for in the marketplace, and perhaps discount future cash flows to a present value with no consideration however for the impact of taxes on those future cash flows.

The tax impact on the cash flows of an income producing property play a significant role in determining "investment value".

In the case of a partnership dissolution, or perhaps a divorce, the interest of one or the other of the parties might be greatly enhanced through an "investment value" analysis. The primary concern in determining the value of an investment property should be how well the investment is projected to perform in the future on an after tax basis.

The expertise in performing an "investment value" study lies in the levels of expertise of a CCIM, the Ph d of commercial investment real estate. Click on The expertise of a CCIM. An "investment value" study might audit existing income and expenses, analyze and restructure existing leases where necessary, and analyze future cash flows on an after tax basis considering the impact of current as well as probable tax legislation on the investment.

While an "investment value" study is an important prerequisite in a property settlement agreement the study also plays a vital role in the acquisition or disposition of an investment property. Prior to the acquisition of an investment property an "investment value" study will determine a value that will support the prerequisite goals of the investor.Prior to taking an investment property to the marketplace for disposition, an "investment value" study can serve to support, and substantiate, an attractive value in the eyes of a prospective buyer/investor.