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What should I know about valuing assets in a divorce?

On Behalf of | Nov 18, 2021 | blog, divorce

When you divorce, one important part of the process is completing dividing your property. You will need to find an equal way to do so under Texas community property laws.

CNBC explains part of the process may require that you assign a value to all the community property you will divide in the divorce.

Taxes

There are some things that can make it difficult to come up with a value for an asset. Taxes are one of those. If an asset will have taxation, you must consider that as you come up with the value. Taxes can greatly reduce the overall value. This applies to stock and retirement accounts.

Fees

Also, consider fees associated with the asset. For example, retirement accounts may have fees or penalties against them that reduce the true value.

Market

Try to maximize the value of an asset. For example, while you may want to sell the family home and split the profits, it may not be advantageous to do so at this time. It could be a bad market where you will not get the best offer on your home. Waiting even a few months could net you more money. Do not rush into selling assets. Consider the market and the potential for a future sale.

Other considerations

You may also want to think beyond monetary value. Something that is not worth much may be worth a lot to you. In valuing it, the court will only consider the monetary value. You would have to take steps to protect the sentimental value it holds and make the court aware. If you have an attachment to an asset, you may have to strike a deal so you can keep it.

Valuation of assets is not an easy process. You should always get professional help to ensure accuracy.