Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
Valuation of marital assets is one of the cornerstones of a clean, conflict-free divorce. Without proper valuation the net marital estate suffers and divorcing spouses may leave the marriage with reduced assets. Accurate and up to date valuation is important in divorce, particularly in a high net worth divorce with a complex asset portfolio.
There are many ways valuation plays a role in divorce. It often comes into play when spouses own a business, real estate, art, intellectual property or crypto assets.
Divorcing spouses may face any of the following valuation issues:
Valuation of a Business
Accurate valuation of a business is an important component of many divorces where spouses own or co-own a business. Depending on the size of the business and other factors, divorcing spouses may want to sell the business to raise liquidity for the divorce, sell their share of the business, buy out the other spouse or continue in business together. Accurate valuation of a business is important because it is a necessary part of assessing the total marital assets in the community property. Accurate valuation again comes into play when the business is sold or one spouse buys out the other’s share.
Valuation of Investments or Crypto
Valuation of high risk investments or crypto is extremely important because these assets are volatile. Therefore an accurate and up to date valuation is the only way to have an equitable divorce settlement. These assets may need to be valued as the divorce settlement is reaching completion to ensure that their value is accurately reflected in the divorce settlement.
Valuation of Real Estate
Appraisal of real estate is a process that can be highly specific to local markets and the property itself. It is critical to obtain an accurate valuation to determine the tax impacts of selling or retaining the real estate, either as a private property or as an investment property that could provide an income. Valuation of real estate also determines appreciation and depreciation, upkeep and maintenance, clarifying the value of the property to the marital estate and how much one spouse may have contributed to the value.
Valuation of Collectibles
Valuation of collectibles like art or a collection of antiques is an important part of determining the overall value of the estate. Some people aren’t aware that a collection of books, comic books or even vintage toys may have significant value. These items can increase in value over time or even during the course of the marriage, leaving one spouse with a substantial asset. Collectibles must be valued to facilitate a fair and equitable divorce settlement.
Valuation of Sentimental Property and Articles that have more than a Financial Value
One of the trickier aspects of valuation in a divorce is valuing property or items that have an emotional as well as financial value. Inherited items or other items that have an emotional value can cause conflict in the divorce. At Divorce Options San Diego we use tools like fair division mathematics to assist couples who may be having difficulty assigning a value to property that is meaningful.
Benefits of Divorce Mediation To Handle Valuation Issues
The benefit of divorce mediation is that parties work with expert appraisers to get a unified appraisal of property such as real estate or a private collection, rather than receiving different valuations from competing experts that cause conflict. It also means that a judge won’t order parties to sell their treasured collections or order property to be divided in a way that does not suit the parties lifestyles or long-term financial goals. Valuation should be thought of as a necessary part of the divorce process that is handled in a precise and timely manner. In this way valuation optimizes the community property in the marital estate and promotes collaboration instead of conflict.
At Divorce Options San Diego, we help divorcing spouses nationally and internationally to get a stress-free non-adversarial divorce. Our in-house experts handle the full appraisal and valuation process of your assets thus reducing the need to hire separate experts. We have offices in San Diego, CA, Berkeley, CA and Silicon Valley. If you are getting a divorce with significant assets, inherited property or a valuable collection, please contact our West Coast divorce mediation experts to learn more about our divorce mediation and valuation services.
