The more assets spouses acquire during marriage, the harder it may be for them to reach a property division settlement during divorce. Spouses may find themselves disagreeing about what assets are subject to division and also what their resources are actually worth. Determining the fair market value of assets that have variable values can be a daunting undertaking as people prepare for divorce. Spouses may have surprisingly different ideas about what certain resources are actually worth.
Putting together a realistic fair market value for assets may require an agreed-upon evaluation date. A valuation date is a specific day that the spouses agree to use when referencing economic information to calculate the fair market value of assets. The following resources are likely to require a valuation date in a complex, high-asset divorce.
Real estate holdings
Couples who want to diversify their income stream or investments might invest in rental properties, homes in poor condition that they can renovate and even vacant parcels of land. Real estate values can fluctuate from year to year. They can even shift substantially during the divorce. Spouses may have an easier time agreeing on property values once they set a valuation date for calculating the likely resale values of their real estate investments.
Stocks and other financial investments
Anyone who monitors the stock market knows that the value of individual stocks can fluctuate drastically in short amounts of time. Small economic changes can have a major impact on the resale price of stocks. The same is true for many other types of investments, ranging from digital resources to physical investments, such as gold and silver. Significant investments may require a set valuation date in order to determine their worth and integrate them appropriately into the property division process for a high-asset marital estate.
Business holdings
Maybe one spouse started a professional practice after they finished their psychiatry studies. Perhaps the couple jointly started a restaurant together. The business valuation process can be relatively complex. The date of valuation can be as important as the identification of business assets and liabilities.
Spouses may need help preparing for complex property division negotiations or litigation. Setting an appropriate valuation date can be a key part of that process. People who have the right support as they prepare for divorce can achieve a better outcome if they pay attention to key details, such as the date set for asset valuation.