Asset valuation is one of the biggest things to consider when you are negotiating the property division during a divorce. It is imperative that you understand some basic information about what happens during the process so that you can make decisions that are in your best interests.
The purpose of the valuation process is to place a dollar value on each asset. This is helpful in the property division process because it can make the division of assets as equitable as possible. Interestingly, different assets might have different valuation processes than others, so it can be a rather complex undertaking.
One thing that must be determined is on which date the asset should be valuated. This might be chosen by the court, but that might not always be the case. It is possible to make the date you filed for the divorce be the valuation date. One instance in which this might not be possible is if you and your spouse had a lengthy separation.
While valuation dates might vary some, a general guideline is that assets that are viewed as passive might be valuated on the trial date. Those that are considered active might be valuated on the date of separation. Of course, there can be some exceptions, so learning about your specific situation might be beneficial.
As you can imagine, valuation in high asset divorces can sometimes become difficult. It is best to ensure that you are protecting your rights throughout the process. This can help you to make decisions that are the most appropriate for your needs at the time.