The divorce process generally requires a division of property. Unless spouses have clear marital agreements in place, they typically need to divide any assets that they purchased and income that they earned during the marriage.
The rule that applies during property division requires a fair or equitable distribution of marital property. What is fair can be significantly different from one case to the next. Spouses need to identify their marital property, establish a fair market value for those resources and then either work together to settle property division or take the matter to court.
Some assets can be very difficult to value, making a professional valuation necessary for a fair outcome, including the three assets below.
1. Real estate holdings
The house where spouses live together, the vacation home they have up north and any investment properties they share can be worth hundreds of thousands of dollars. What spouses paid likely isn’t what the home is currently worth. Evaluation by a real estate professional is likely necessary.
2. Businesses and professional practices
If either spouse started, purchased or inherited a business during the marriage, they may need to address the value of the company when they divorce. There are numerous different ways to value a business or professional practice, and spouses often need the guidance of a professional to not only choose the right valuation method but apply it appropriately to the marital estate.
3. Specialty collections
Resources collected during the marriage, either jointly by the spouses or separately by one spouse, may require a professional valuation. Antiques, designer clothing and other high-value personal assets may require professional valuation for spouses to realistically estimate their worth.
People who have the right support during the preparation stages of divorce can push for a fair outcome. Knowing what assets are worth is the first step toward a fair property division settlement.