Before you can begin the process of dividing your marital property in a divorce, you will need to create valuations for each asset.
The process of valuing an asset can be complex, especially if your property includes difficult items such as stocks or heirlooms. However, in most cases, you will be able to find a fair market value for the item. But even if something seems straightforward, there are a few factors you will have to consider in the valuation for the best result.
Current market conditions
The state of the current economy can play heavily into the valuation of your assets. The fair market value depends on current sales pricing. You may see issues when it comes to stocks, real estate and other volatile assets. You may even notice vehicle valuation is much different than expected due to current supply and demand.
Fees associated with the asset
You also want to factor in any fees that may apply. For example, certain money accounts may have fees on them if you cash them out early. This will reduce the overall value.
Taxes you will pay
Taxation can play a huge role in the value of an asset. If you have to sell something, you may end up having to pay a lot of taxes on it, which would reduce its overall monetary value.
Sentiment is important too
Sometimes the value of an asset has nothing to do with money. If an item carries heavy sentimental value, its monetary value may be much less than how much you feel it is worth. You might decide it is worth taking an asset because of the memories tied to it, even if it is worth much less than other options.
Asset valuation can be challenging. You will need help from industry experts along the way, but you also want to remember your attachment to assets should also play a role.