Dividing marital property reasonably and fairly becomes much more challenging when people have a variety of high-value shared resources. Spouses with investments, real property, business holdings and other high-value marital assets may find themselves disagreeing on many details about the property division process.
It can be a challenge to effectively address high-value resources. Spouses may even struggle to agree on a fair market value for key shared assets. Agreeing on a valuation date is often the first step toward a reasonable property division settlement in a high-asset divorce scenario.
What is a valuation date?
Spouses generally need to agree on the fair market value of the assets they must divide when they divorce. Calculating what resources are worth requires a review of many unique factors, including economic conditions.
Real estate, businesses and stocks all fluctuate in value based on macroeconomic factors. A valuation date helps ensure that both spouses consider the same details when estimating the fair market value of marital property.
Frequently, spouses choose the date they initially separated or the date that one spouse filed for divorce as the valuation date for marital property. Setting that date is important, especially if spouses hope to negotiate terms for an uncontested divorce. When they both use economic details from the same date, the likelihood of a dispute about the value of key resources declines.
Individuals facing complicated divorces with a variety of marital assets to divide often need guidance as they estimate the value of their assets and begin negotiating. Working with an attorney can help spouses understand their rights and push for a fair property division outcome.