Financial disclosure is a standard component of most modern divorces. Spouses have to put together lists of their assets and financial obligations. They share those lists with one another and possibly also with the family courts if they must litigate to resolve their divorce disagreements.
Asset valuation is a crucial component of the financial disclosure process. People have to know what marital property is worth if they want to reach a fair and appropriate outcome for dividing those resources. In some cases, there is a clear value attached to an asset. A checking account is worth as much as the amount deposited in the account. Other assets can be more difficult to value.
What types of resources may require special attention during the property division process?
Businesses or professional practices
If either spouse inherited, purchased or started a business, the company could be relatively valuable. It may own real estate or machinery. It could generate tens of thousands of dollars or more in revenue annually. There are a variety of different business valuation methods that people can use to determine what a company is worth. Spouses may need help selecting the right method and applying it to the business.
Real estate holdings
Spouses may have purchased a home together. They may have a vacation house as well. Some spouses buy property as investments. They may rent homes or commercial properties to tenants or hold vacant parcels as a long-term investment. The amount paid for a property is often not indicative of what it is currently worth. People may need to work with real estate agents or appraisers to determine a fair and reasonable value for any real estate they own.
Personal property
People are often dismissive about personal property, but it can be worth more than people expect. A wardrobe that contains many designer components could be worth thousands of dollars. A collection of fine art or jewelry acquired with marital income could also prove to be relatively valuable. Antiques, equipment associated with hobbies and personal collections, such as costly bottles of wine, can also require the insight of someone with expertise in that area to determine what they are actually worth.
Acquiring appropriate support during asset valuation and property division proceedings can help people to better ensure that they receive a fair outcome. Spouses who accept estimated values for major assets may do themselves a real disservice. Proper preparation for asset division negotiations can make a major difference.
