High-asset divorces often involve a number of complicating factors. Spouses may have numerous resources that they need to divide. They may have certain expectations due to the standard of living during the marriage. If there is no existing marital contract between the spouses, then they must either negotiate terms to divide their marital property or prepare for litigation, which requires thorough financial disclosures by both spouses.
High-asset divorces offer more opportunities for conflict, especially disputes about property division. Couples preparing for asset distribution negotiations can reduce opportunities for conflict by proactively establishing a specific valuation date.
What is a valuation date?
Calculating the fair market value of marital resources can be challenging. Determining what assets are worth on the resale market usually requires insight into market conditions, such as the performance of the overall economy and the sale of similar assets at roughly the same time.
When divorcing spouses set a valuation date, they can then use the same baseline economic details during the asset valuation process. They are less likely to have significant disparities in the valuations they reach than they might be in scenarios where are they select substantially different valuation dates. Couples often agree to use the date of their initial separation or of one spouse’s filing as the valuation date.
Complex property division disputes are sometimes preventable with the right agreements early in the divorce process. Spouses who set a valuation date can limit the likelihood of major disparities in estimated asset valuation. Working with an attorney who is familiar with these unique, challenging divorces can also make it easier for spouses to push for a fair outcome accordingly.