When you are dealing with property distribution during a divorce, the value of the assets might come into play. If you want two assets and are willing to give up one asset for them, you might do better negotiating or making an argument if you can show the single asset has an equal or higher value than the two you want. Value is also important if you are negotiating buyouts of property or want to sell property and split the proceeds.
While asset valuation can be an important consideration in any divorce, it is obviously a factor in high-asset divorces. So, how do you go about seeking valuation on the assets in question? You might think you simply check book value, rely on market value or get an appraiser to weigh in. It’s not that simple, though; first, you have to decide on a valuation date.
Assets can change value a great deal throughout the time it takes to complete the divorce process. To ensure property division and related matters aren’t dealing with a constantly moving target, the courts require that you consider the value of assets on a specific date. In Connecticut, that date is the date of dissolution of the marriage. However, if an exact dissolution date is not apparent, the law says to use “today’s date.”
That means you might need to pay attention to exactly when you are filing, especially if you expect some type of sudden change in value. Would it be better to file something tomorrow or next week? Obviously you can’t know for certain about the future — and two people can play at the timing game. You can work with your divorce lawyer to decide when timing might be on your side and how you can leverage it.
Source: Forbes, “How the Valuation Dates of Different Assets Are Decided During Divorce,” Jeff Landers, accessed Sep. 30, 2016