People preparing for divorce have a lot of decisions to make. They often need to reach agreements with their spouses on a variety of different issues, including property division. The property division process is rife with opportunities for conflict, as both spouses likely want to retain as much of the marital estate as possible.
Spouses may find themselves disagreeing about what assets are subject to division and what those resources are worth. People need to know what their property is worth when settling property division matters, and more complex assets change in value frequently. As they move forward with negotiations or prepare for litigation, they may have to agree on a valuation date. That date can have a major impact on the outcome of the property division process.
What is the valuation date?
Many resources included in the marital estate can dramatically fluctuate in value from month to month. The real estate market can change abruptly due to criminal activity or major weather events. Economic shifts on a macro scale and company challenges can significantly alter the value of stocks.
The valuation date in a divorce case is therefore important, as it establishes the date for calculating what an asset is worth. Valuation dates are important for real property, businesses and other investments.
Setting the valuation date is a major decision
Choosing the right valuation date is important for a fair outcome when splitting marital properties and debts. Spouses sometimes find themselves disagreeing about valuation dates, especially when a change in the valuation date could have a major impact on the value assessed for specific assets.
Individuals preparing for divorce may want to look at the dates when significant changes occurred in the marital relationship and also fluctuations in the economy when agreeing to a specific valuation date. By setting a specific date, people can produce reliable, verifiable valuations for assets ranging from small businesses and real property to investment portfolios.
Factors that can directly influence the outcome of property division proceedings are important considerations for those preparing for complex divorces with high-value resources. Those who prioritize setting an appropriate valuation date can be more likely to receive a fair portion of the value of marital assets when they divorce.
