There are many dates that can play an important role in a high-asset divorce. The date when spouses initially marry can influence what assets are subject to division. The date of separation can influence financial obligations and the division of wages.
When spouses must establish valuations for resources such as investment portfolios, business holdings and real estate, a valuation date can also be an important part of the divorce process. Valuation dates can limit property division conflict and help to better ensure a reasonable settlement.
How valuation dates can help
The fair market value of assets, or what they are worth if listed for sale, significantly impacts the overall division of the marital estate. Spouses must either negotiate terms that they both agree are fair or present information to the courts to guide a judge’s determination regarding the distribution of their resources.
An agreed-upon valuation date reduces the likelihood of spouses having vastly different asset valuations for the same assets. The calculation process for particularly costly resources often looks at macroeconomic factors on a specific date. Stock prices, the housing market and business prospects all change as other elements of the economy evolve.
If spouses can agree on a specific valuation date in the early stages of a high-asset divorce, it may be much easier for them to reach similar asset valuations and to negotiate mutually-agreeable terms for property division. For many couples, the valuation date might be the date one spouse filed divorce paperwork or the date that spouses agreed to begin living separately.
Attorneys can help people avoid unnecessary concessions and unfair terms during complicated divorces. Seeking guidance when setting a valuation date, assessing what property is worth and negotiating asset division can help people obtain the best possible divorce outcomes.