There are many unique details that influence the property division process during a divorce. The duration of the marriage, the income of both spouses and even custody arrangements may influence how people split their resources and shared debts when they divorce.
The value of individual resources is also a key consideration. The more assets spouses have and the more complex the marital estate is, the more difficult it might be for them to arrive at an agreement regarding how they divide their assets. Setting a specific valuation date can be beneficial for those who need to address a variety of different marital resources.
What is a valuation date?
A valuation date is essentially an agreed-upon date that helps guide the property division process. Establishing the fair market value for assets requires details about the market, including demand, supply and even stock prices.
What an asset is worth can shift rapidly depending on the economy. Professionals attempting to value real property, businesses and other assets have to gather data about the market to arrive at a reasonable value.
Using a specific valuation date when estimating what various assets are worth can make it easier for spouses to reach values for assets that they both agree are reasonable. Without a valuation date, professionals attempting to estimate the value of different assets could reach vastly different final figures because they use data from different dates.
Spouses generally need to agree on what their resources are worth to negotiate a workable property division settlement. Understanding how to approach a high-asset divorce can make it easier to settle matters amicably or otherwise advocate for an appropriate outcome.