Should each spouse have their own asset valuations done?
Asset division can be one of the most contentious aspects of a divorce. This may especially be the case in high-asset scenarios.
Ohio, like many other states, follows the principle of equitable distribution. It calls for the fair, but not necessarily equal, division of marital assets. Should each spouse arrange for their own valuation of assets?
Neutrality
Accurate valuation is necessary for assets such as real estate properties, businesses, investments or valuable collections. Separate valuations conducted by independent professionals can help ensure that neither spouse is disadvantaged by inaccurate or biased assessments.
Each spouse may have different interests and priorities regarding certain assets. For instance, one spouse may value retaining ownership of a family business, while the other may prefer liquidating it for a fair share of its worth. Separate valuations can provide clarity on the true value of assets and enable each spouse to negotiate from a position of knowledge and understanding.
Reduced conflict
Divorce proceedings can involve a lot of emotion and conflict. Relying on a single valuation for all assets may increase tensions if one spouse doubts its accuracy or fairness. Separate valuations can mitigate potential conflicts by providing each party with their own set of data and analysis.
Complexity
High-asset divorces often involve complex financial portfolios, including investments, trusts and multiple properties. A single valuation may not capture the nuances of each asset’s worth or the implications of tax liabilities and future earnings potential. Separate valuations allow for a more comprehensive assessment of each asset’s value and its impact on the overall division of property.
Ultimately, the goal of asset valuation in divorce is to achieve a fair and equitable distribution of property. Separate valuations can help ensure that each spouse receives their rightful share based on accurate assessments. The decision to obtain separate valuations of assets is not mandatory but can offer many benefits.
