When you divorce, your marital assets and debts will need to be divided between you and your spouse. This is referred to as property division.
One of the first steps in the property division process is to execute a marital balance sheet. This is a list of your marital assets and their current value.
There are a variety of factors that will be analyzed when valuing an asset. One important part of valuing an asset is determining its valuation date.
What is a valuation date?
A valuation date is the exact point in which the asset’s value will be set. State law dictates when an asset is valued.
The valuation date in most states is the date of divorce mediation or trial. The valuation date in some states is the date you separated from your spouse or the date the divorce papers were filed.
In a few states, including Indiana, the valuation date is discretionary. It could be the current date, or it could be the date the divorce papers were suggested.
Why do we need to know the valuation date?
The appraiser can arrive at a value of an asset once they have a valuation date, along with the standard to be used in valuation and the premise of value. These factors will be incorporated with the known facts and circumstances at the valuation date.
A valuation date is a necessary component of property appraisal. Property appraisal is a key step in the property division process. Property division can be a complex family law issue.
It can take time to value an asset, but receiving an accurate valuation is essential for a fair and just outcome to the division of assets and liabilities.