Financial matters often dominate divorce negotiations. Spouses have to find a fair way to divide their property and split up their financial obligations. In some cases, they may agree to sell certain assets and share the capital generated. Other times, each spouse may seek to retain certain assets.
For the spouses to reach a fair property division settlement, they first have to agree on what their assets are worth. A checking account can be easy to value, as it contains a set amount of money. Other assets can be more of a challenge to address during divorce proceedings.
The three types of assets below may require careful consideration. Spouses may even need to bring in professionals to ensure that they reach an appropriate valuation for these resources.
1. Real property
Real estate values fluctuate based on market conditions and housing trends. Primary residences, vacation homes and investment properties can be a challenge to effectively value during a divorce. Spouses may need to hire an appraiser or a real estate agent to determine what their real estate holdings are worth.
2. Businesses or professional practices
Maybe the spouses started a small retail shop together. Perhaps one of them is a licensed accountant who runs a professional practice.
Businesses can be worth hundreds of thousands of dollars or even more. Spouses may need help choosing a valuation method as well as analyzing the company’s resources and finances to determine what it is worth.
3. Investment holdings
Like real property, investments can fluctuate in value. Stocks can gain or lose hundreds of dollars in value in a single day. Digital investments and physical assets like gold or silver also see price fluctuations.
Spouses with diversified investments often need to agree on a valuation date. They then need to estimate the value of their investment holdings on that date in order to address them fairly.
Other assets that can be challenging to value include works of fine art, classic cars, antiques and even jewelry. Spouses who identify valuable assets and determine what they are likely worth can then use that information while dividing their marital property. Getting help with asset valuation can help spouses negotiate a property division settlement that is more fair or effectively present their side of the situation to the family law judge overseeing their divorce.
