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The Importance of Valuation Dates During the Property Division Process

Posted on in Complex Property Litigation

TX divorce lawyerThere are a number of issues that couples must address before a court will finalize their divorce, one of which is how their marital property, or the assets that were acquired during the marriage, should be divided. Under Texas law, divorcing couples must divide their marital assets in a fair and equitable way, an endeavor that is only possible if the parties have a thorough understanding of the current monetary value of the assets in question, which can vary significantly depending on the date that is chosen for valuation.

Determining an asset’s valuation date can be a difficult and often contentious process, so if you and your spouse have decided to file for divorce and own unique or valuable marital assets, it is important to contact an experienced high asset divorce lawyer who can ensure that those assets are properly appraised and divided fairly upon the finalization of your divorce.

Establishing Value

The valuation of marital assets can be established in a number of different ways, including by:

  • Agreement between the parties;
  • Documentary evidence;
  • Testimony of the parties; or
  • Testimony of an expert appraiser.

These valuation methods must be used regardless of whether an asset is labeled as active or passive. Active assets are marital assets that can change in value as a result of the actions of the owners, while passive assets are the assets that can change in value because of forces beyond the owners’ control. Stocks, the value of which depends wholly on the state of the market, are one of the most common examples of a passive asset.

Date of Divorce

Each state has its own regulations and guidelines for determining the date of asset valuation during divorce. For instance, Texas courts have long held that the value of community assets during divorce should be calculated from the date of divorce, or as close to that date as possible. Whether a valuation occurred close enough in time to the date of divorce is left up to the judge in each case. However, most courts have proved willing to allow couples to introduce evidence of an asset’s value that was obtained a few months prior to trial, but only if no competing evidence of a more recent value has been introduced by the other spouse.

Dedicated Leander High Asset Divorce Attorneys

For help ensuring that your own marital assets are properly appraised and divided upon your divorce, please contact the experienced Leander high asset divorce lawyers at The Law Offices of William D. Powers today. You can reach a member of our legal team by calling 512-610-6199, or by submitting one of our brief online contact forms. A member of our legal team is standing by to help you through each step of your case.

 

Source:

https://www.forbes.com/sites/jefflanders/2011/10/12/how-the-valuation-dates-of-different-assets-are-decided-during-divorce/#15e762d5551c

 

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