The practical issues that arise during divorce can be as challenging as the emotional elements of divorce. Spouses have to work out ways to split up their financial resources and obligations. That process can be very challenging, as divorcing spouses tend to disagree about what is fair and reasonable.
Not only may they struggle to agree on the most appropriate way to split their assets, but they may also disagree with one another about what their assets are worth. Professional valuation can be beneficial during contentious divorce proceedings, especially in cases where people have accumulated high-value assets during a marriage.
Asset values affect property division
Asset distribution during a divorce is not a formulaic process. Spouses don’t just split everything they own in half. Instead, they determine what property they have to divide, what those assets are worth and then a fair way to share them.
In some cases, they may directly split certain resources. Other times, they may use one asset or debt to balance out another decision that they made. Setting an appropriate fair market value for major assets is therefore critical to achieving a fair divorce outcome.
What assets require professional valuation?
There are many different resources that people may have a hard time accurately valuing on their own. Real property is a common source of conflict during property division proceedings.
Spouses may disagree about what the home is worth, and the property’s value may have changed drastically during the marriage. Working with an appraiser or real estate agent to determine the fair market value of the marital home and any other real property holdings can help spouses decide how to divide equity and how to balance out home equity with other resources.
Businesses may also require professional valuation. There are a number of different valuation strategies that can determine what a company is worth, and spouses may have a hard time choosing a valuation method, let alone gathering the information necessary to reach an accurate valuation.
Investments sometimes require professional valuation, especially in scenarios where they may have a fluctuating price. Personal property could also warrant careful valuation.
Maybe one spouse has an extensive collection of vintage suit coats. Maybe the spouses accumulated hundreds of bottles of wine or film memorabilia that could be worth thousands that they used to decorate their home. Determining what those assets are worth can make it easier to agree on who keeps them and what the other spouse receives in return.
Identifying valuable assets can help people determine when they may need professional valuation to achieve a fair property division outcome. Spouses who know the value of their marital resources are less likely to make unnecessary and costly concessions during divorce negotiations.
