The more assets that spouses acquire during their marriage, the more they must divide when they divorce. Spouses with a variety of different assets may find it challenging to split up the marital estate amicably.
In some cases, the spouses both prioritize the retention of the same assets. Other times, they may find themselves disagreeing intensely about what their shared property is worth. The value of assets is an important consideration during property division negotiations, especially when couples cannot actually split certain assets due to their non-liquid nature. Agreeing on a specific valuation date can be helpful for those preparing for high-asset divorces.
What is a valuation date?
As the name implies, a valuation date is a specific day selected for the purpose of asset valuation. In a divorce, people often use the date when they initially separated or filed divorce paperwork as the valuation date.
The valuation date influences the estimated fair market value for resources. Calculating what real estate, businesses, stocks and other complex assets are worth requires an evaluation of the market conditions.
The valuation date selected can have a profound impact on the estimated values set for resources that fluctuate in value. Couples may have an easier time settling their disputes about what assets are worth when they both use the same date when referencing market conditions.
Having appropriate support during complex property division negotiations can set people up for the best possible outcome. Those with valuable and diversified resources often need assistance determining what their property is worth and how to fairly divide their shared property during divorce proceedings, and that’s okay.