Couples preparing for divorce sometimes rush through the property division process. They compromise more than they should in some cases, leading to an unfair outcome. Their hopes of completing the process as quickly as possible or their desire to minimize costs can end up doing them a disservice in the long run.
The law requires a fair or equitable distribution of property based on the personal and economic circumstances of the spouses. What is fair depends on a variety of factors including how long the marriage lasted, how much separate property each spouse has and other unique details. The value of various marital assets can also influence the most appropriate way to divide shared property. As such, for those with complex, higher-value marital estates, working with professionals for property valuation purposes can be a smart decision.
What assets require an outside valuation?
There are certain types of assets that are difficult for divorcing spouses to properly value on their own behalf. For example, real estate can be difficult to value even when people know what they paid for the property and have invested in it since acquiring it. A review of nearby property sales is important during real property valuation. Professional support is often necessary to understand what the couple could ask for the home if they listed it for sale.
Businesses can also be difficult to value without professional assistance. The variety of resources and obligations businesses accumulate and the different valuation models available make professional assistance worthwhile when the marital estate includes a business or professional practice.
Even personal collections may warrant professional valuation. Assets only one spouse wants to keep can represent a significant amount of marital income. Maybe one spouse has avidly collected coins and stamps. Perhaps both spouses enjoyed acquiring works of fine art or a collection of wine.
Those resources can represent a substantial amount of marital wealth if acquired using marital income. Proper valuation is crucial so that one spouse doesn’t end up receiving far more property than the other. Only those who understand what different assets are actually worth can properly negotiate or present their perspectives during litigated property division proceedings.
Paying for professional valuations can be a smart move for those preparing for a complex, high-value divorce. Knowledge is power for those trying to settle certain financial matters during as their marriage ends.