Some couples have a very simple property division process ahead when they divorce. They have limited shared property or have already signed a prenuptial or postnuptial agreement describing how they intend to divide marital assets and debts.
Others have a variety of resources that may be subject to distribution under state law. They need to negotiate a settlement with one another or prepare to take the matter to court. Spouses may find themselves disagreeing on many details about property division, including the fair market values of their shared assets.
When dividing complex marital resources, spouses frequently have to agree on a valuation date. Why do divorcing spouses need to agree on a date for the division of their property?
Property values fluctuate
Determining what assets are worth may require a thorough review of the asset’s condition and the market. Anyone who has monitored the real estate market or stock market to make informed investment choices understands that the fair market value of an asset can change dramatically in just a few hours.
The demand for specific resources and other economic factors influence an asset’s value. For spouses to appropriately split up their marital property, they first need to agree on a date to use when calculating the fair market value of their resources. Businesses, real property, personal collections and even investments may require a valuation date to ensure a fair property division process.
Learning more about the issues that can complicate a high-asset divorce can help people prepare for the process ahead. Spouses have to agree on a variety of terms to effectively divide their marital property. Having individualized legal guidance will help you protect your rights as you go through this process with your spouse.