Valuation

Fair Market Value: Recreational value vs. Cost Approach as Working Ranch

Marriage of Ortiz 282 Mont. 500, 938 P.2d 1308 (1997) dealt with value of a 709 acre ranch. The parties had lived there, but it was not an economically viable operation and the trial court ordered it sold. Husband’s expert using a “cost” valuation approach assumed that the ranch would continue to be used as a ranch, and valued on the basis of predictable stream of income from ranching operation. Wife’s realtor expert did a CMA based upon comparable sales, with the idea that the place would bring the most money on the market as recreational land. The Court approved Fair Market Value adopted by District Court.