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How does valuation work in a high-asset divorce?

On Behalf of | Jul 17, 2023 | Divorce

Separating assets equitably can be a challenging aspect of any divorce, especially for people with considerable wealth and property.

Accurate valuation is a crucial step in the process of reaching a fair outcome in a high-asset divorce. The valuation process determines the monetary worth of various assets, including real estate, investments and personal possessions.

Intricacies of high-asset divorces

Affluent households often distribute their wealth across a range of assets and may have diverse financial portfolios that are difficult to separate. Some wealthy individuals are business owners, which can make divorce more complicated. Determining the difference between marital and separate property can also be challenging. Furthermore, assets like real estate and investment holdings can vary in worth as the market fluctuates. High-asset couples may have signed pre-nuptial agreements that can alter property separation as well.

Factors that impact the valuation of assets

Valuation is a nuanced process, and there are several factors that can affect the outcome. For instance, tax implications and current economic conditions may complicate valuation. Additionally, some assets are likely to gain value in the future while others can depreciate. Unique items, such as works of art or collectibles, also pose a challenge during valuation.

Often, wealthy people who are divorcing employ experts to assess their homes, businesses, valued possessions and financial portfolios to assign value more accurately. In a high-asset divorce, it is advisable for both parties to seek professional valuations of their properties.

To reach an equitable settlement during a divorce, wealthy households should employ valuation to assess the worth of various assets with accuracy.