Preparing for divorce is a complex process. Spouses often have to devote weeks to gathering financial records and preparing for court or negotiations. The decisions that they make about property division and other financial matters can affect their lives for years to come.
It is of the utmost importance for couples to arrive at fair and reasonable terms for property division. Setting fair terms requires that spouses first consider their economic circumstances. The property that belongs to each spouse, their current income and their future earning potential can all influence how spouses decide to divide their shared assets.
To approach the process appropriately, spouses typically need to have an understanding of what their assets are worth. Certain assets, including the following, can be difficult to value and may require the assistance of outside professionals.
The marital home
The house where a couple lives together and any secondary real estate they own can be a major component of the marital estate. The value of real property can also change significantly over the course of a marriage. Oftentimes, divorcing spouses decide to have a professional appraisal done to determine what their home is currently worth. In fact, sometimes spouses have two appraisals performed because one spouse disagrees with the appraised value that the professional hired by the other spouse sets.
Investment resources
In theory, stocks and other Investments have an obvious fair market value based on their current sale price. In practice, that price can fluctuate throughout the day and may change drastically in a matter of weeks. Spouses may need to negotiate to set a specific valuation date when determining what investments and stocks are worth. They may sometimes need to bring in professionals to assist them with establishing the fair market value of an investment portfolio.
A small business or professional practice
Many people decide to start their own companies to support their families. They may invest marital income to acquire business resources. They may then need to undergo a thorough business valuation process to determine what the company is worth. The process can look at everything from physical assets to future revenue depending on the type of business.
Proper evaluation of high-value, complex assets is crucial for those pursuing a fair outcome in a pending divorce. Spouses need to know the fair market value of assets to set and achieve reasonable divorce goals.