3 assets that may require professional valuation during divorce

On Behalf of | Jun 12, 2024 | Division Of Property

Handling property division matters can be a major challenge in the early stages of a divorce. Especially if couples want to pursue an uncontested divorce where they settle issues amicably, they need to find a way to agree on how they share the resources they have acquired and divide responsibility for their shared debts.

The process often begins with creating an inventory of what assets and debts are subject to division. From there, people may negotiate in pursuit of certain terms. Spouses sometimes need to give up property that has significant financial or emotional value. They may need to sell assets as a way of fairly splitting their property.

To reach the most appropriate solution possible, spouses typically need to know what their assets are worth. For certain types of property, professional valuation may be necessary to ensure that spouses can make informed decisions.

Real estate

Many couples only own one piece of real estate. They purchased a home where they live together. Frequently, couples think of what they paid for the home as what it is worth on the open market. That is not necessarily the case. Property values can change substantially as the local market changes. Improvements to the home while living there could also significantly increase its value. It is often necessary to have an appraisal performed to determine exactly what a home is worth during a divorce.

Business holdings

Perhaps the spouses worked together to start a small retail business. Maybe one spouse runs a professional practice as an accountant. Businesses can be very valuable resources, but they can also be very difficult to address in a divorce. Factors ranging from the likely future sales to the depreciation of high-value company resources can influence what the company is worth. Professional business valuation is sometimes necessary to ensure that spouses address the value of the business properly.

Personal property

There are numerous assets that could be part of the marital estate that technically belong to one spouse or the other. Maybe one spouse collects sports memorabilia and has amassed a sizable collection. Jewelry, watches, designer clothing, vehicles and art are all personal property that could have significant value. Even in scenarios where one spouse has no interest in retaining those assets, they need to know what they are worth to advocate for a fair outcome to property division proceedings.

Finding out what marital assets are worth is an important part of the property division process during  divorce. People sometimes need the help of outside professionals to ensure that they appropriately value marital property.