Divorce is never easy. In addition to the emotional stress of separating from your spouse, you must also divide up all your mutual marital assets. This can be a difficult task, especially when you don’t know where to begin to determine the value of your property. There’s also the added stress of ensuring that all assets get divided fairly according to the law. Keep reading to learn how to determine the value of your marital assets and ensure that you receive a fair settlement.
Start by Creating an Inventory
Before you can determine the value of your marital assets, you must first make an inventory of all the assets you own together. This includes everything from your home to your furniture, cars, stocks, and retirement accounts. Once you have a list of everything you own together, you can begin to assess their value.
2. Understand Fair Market Value vs. Intrinsic Value
When calculating the value of your assets, it’s important to distinguish between fair market value and intrinsic value. Fair market value is the price that an asset would sell for on the open market. Intrinsic value, on the other hand, is the perceived value of the asset based on its qualities, such as sentimental value.
Knowing the difference between fair market value and intrinsic value can help you make informed decisions during the asset division process. Working with an experienced attorney and financial advisor is essential to ensure that all assets get valued fairly and accurately.
3. Get Professional Appraisals
If you and your spouse have valuable assets such as real estate or art, it’s advisable to get a professional appraisal. This is especially important when it comes to assets that you hold for investment purposes, such as stocks, which require an expert to determine their fair market value. While some appraisals can be expensive, they provide an unbiased estimate of your assets’ value which can be useful in negotiating a settlement.
4. Consider the Tax Implications
Another thing to consider when determining the value of your marital assets is the tax implications of dividing these assets. Certain assets, such as capital gains tax, carry a tax burden when sold. You will want to take this into account when dividing assets to ensure that one person doesn’t take on an unfair tax burden. It’s advisable to consult with a financial advisor or a tax expert to understand the full tax implications of dividing assets.
5. Negotiate a Settlement
After assessing the value of your marital assets, you and your spouse will need to negotiate a settlement. This can be a difficult and emotional process, but ensuring that both parties receive a fair settlement is important. If you’re struggling to come to a mutually agreeable settlement, consider hiring a mediator or attorney.
Remember to start by creating an inventory of your assets, understanding the difference in fair market/intrinsic value, getting professional appraisals if necessary, taking the tax implications into account, and negotiating a settlement. By following these steps, you can divide your mutual assets fairly and start your new life with financial stability.
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