The details matter when negotiating a property division settlement. Spouses trying to work cooperatively or relying on a judge to divide their property have to look at their circumstances carefully.
Not only do they need to identify their marital assets and shared financial obligations, but they also need to determine what those resources are worth. Frequently, people roughly estimate the value of many of their assets. It is reasonable to use the purchase price or the replacement value of common goods, such as housewares or furniture.
However, it is sometimes critical to know exactly what an asset is worth because it contributes quite a bit to the overall value of the marital estate. Divorcing spouses sometimes bring in outside professionals to determine what certain assets are actually worth.
What resources might warrant professional valuation during divorce proceedings?
Real property
The home where the spouses live may have appreciated in value substantially since they bought the house. They might have vacant land or vacation homes that are part of the marital estate as well. Frequently, divorcing couples need the support of appraisers to determine what their real property is worth and address their accumulated equity effectively.
Business holdings
If either spouse purchased, started or inherited a professional practice or business during the marriage, it may be one of the most valuable resources either spouse owns. Business valuation can be incredibly complex, and people often need support determining what the fair market value of a company actually is.
High-value collections
Maybe one spouse has long collected vintage Chanel dresses. They may have spent hundreds of dollars each year acquiring wardrobe pieces that they could sell for even more than that on the current market. Perhaps one spouse is an art lover and has numerous unique original works in their possession. Sports memorabilia, classic cars and fine wines are among the other types of collectibles that can have far more financial value than people initially realize.
Establishing an appropriate fair market value for assets is the first step toward negotiating a reasonable property division settlement during a divorce. Spouses who want to protect their financial interests may need outside support as they determine what certain assets are worth, and that’s okay.