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What is asset valuation in a divorce?

On Behalf of | Dec 17, 2019 | high asset divorce | 0 comments

In a marriage, you and your spouse make investments and purchases as a couple. If that New York marriage dissolves, what happens to your assets? The two of you may argue over the house, the business property or even the furniture that you purchased as a couple. While divorce is often messy, property division can be one of the messier components. In order to split your assets fairly, you may need an asset valuation.

Investopedia defines an asset valuation as the process of determining the market value of assets. In a divorce, this could be your personal or business property. Fixed assets are a straightforward measure. These assets have book values and are easy to add up. However, other assets may be more difficult to pin down.

One way that you can find out the value of your property is through relative valuation. This involves observing similar assets and writing down the market prices. Once you have similar prices, you can determine the price of your property. If you have stocks, for instance, you may use comparable valuation.

Now, you may determine the net asset value. The net asset value is the value of all tangible assets minus the liabilities and other intangible assets. This is a great way to come up with a minimum net worth, in terms of assets. Once you have an idea of the value of your assets as a couple, you can make more informed decisions on how to split the assets fairly amongst one another.

The above information is meant to inform on what asset valuation is. It is not to be interpreted as legal advice.