Preparing to divide community property during divorce can be a challenging prospect. Spouses have to go over their financial records to identify shared assets and debts. They may be able to exclude some resources from the community property division process by establishing them as separate property.
The spouses can then find ways to divide both their financial obligations and resources in a way that they agree is appropriate. They can also wait for a judge to apply community property statutes to their pool of marital property.
The value of various resources can have a major impact on the outcome of the property division process. Some assets are easy to value, while others may pose more of a challenge. The three types of resources outlined below may require professional assistance to ensure an appropriate valuation.
Real estate
People often assume they know what their homes and other real estate holdings are worth. They may refer to what they paid for the property when they originally purchased it. However, property values can increase substantially due to market fluctuations and improvements in the property. Many divorcing couples need the assistance of an appraiser to determine a realistic fair market value for their homes.
Businesses or professional practices
Starting a company can allow spouses to act as their own bosses. People may invest heavily in a small business as a way of supporting the family. When they divorce, it can be difficult to accurately value the business. There are multiple different business valuation models available that look at factors ranging from estimated future sales to the value of machinery. Bringing in a professional to establish a business valuation can reduce the likelihood of spouses clashing over the company’s worth.
Valuable collections
Maybe one spouse has slowly accumulated numerous works of fine art throughout the marriage. Perhaps the collection entails vintage prestige wristwatches or an array of different valuable bottles of wine. Those personal holdings can potentially represent tens of thousands of dollars’ worth of marital income and investment. It is sometimes necessary to bring in outside professionals to estimate what those niche personal holdings are worth.
Even in scenarios where people may not wish to retain specific assets, like a business run by their spouse, they still need to know what those resources are worth to achieve an appropriate property division outcome in a high-asset divorce. Having the right support in the early stages of a divorce can increase the likelihood of an appropriate outcome.