Considerations when valuing assets in a divorce

In high asset divorces, one of the most complex aspects is the valuation of assets. This process involves determining the value of property, such as real estate, investments, businesses and other valuable items.

To ensure the best possible outcome, couples should make certain considerations for handling asset valuation.

Use a professional appraiser

A professional appraiser is an expert in the field of valuation. They can provide an accurate assessment of property value. Appraisers use a variety of methods to do this, including market analysis, income approach and asset-based approach. They also have training and skills in handling the valuation of complex property.

Keep taxes in mind

Certain assets, such as retirement accounts and investments, may have tax consequences due to the division during divorce. Even a house could also bring about tax concerns. Couples should understand the implications and how taxation could impact final valuations.

Understand liquidity

The liquidity of assets is how easily a person can convert the asset to cash. Some assets, such as real estate and businesses, may be difficult to sell quickly or may require the sale of other property to generate cash. Knowing the liquidity of assets that a couple will divide can be important to the overall fairness of the settlement.

Asset valuation requires a lot of special care, as there can be many challenges to reaching the right numbers. The goal in the end is to find out the value of all marital assets so that the couple can reach an equitable settlement.