How Are Assets Valued in a Divorce?

At Rice Law, we understand that divorces can be emotionally draining and sometimes even hostile. There are many important decisions to be made during a divorce. Will alimony be paid? Who will retain custody of the children? A crucial subject to broach is the matter of property division. Tennessee is an equitable distribution state, meaning that assets will be divided based on what is fair and equitable but not necessarily equal. It is important to have assets valued during a divorce to ensure that one spouse is not walking away with an unreasonably high amount of assets. However, valuing property can be difficult as there are many factors to consider. If you are going through a divorce work with a Memphis, Tennessee property division lawyer to ensure your rights are protected during asset distribution.

What Are Some Standards of Value?

A complicated aspect of property evaluation is that there are many ways to value an asset. Depending on your relationship with the object you may feel it is worth more or less than it actually is. The following are some standards of value that can be used to determine value.

• Purchase price: You may consider an item worth what you paid for it. Since you spent that amount to buy the item you may consider it worth that amount.
• Depreciated cost: Another way to evaluate value is to consider depreciation. Over time certain assets lose their value due to new models, age, wear and tear, etc.
• Fair market value: You may assess what other similar assets are worth on the market now to determine what a hypothetical buyer would be willing to pay for them.
• Sentimental value: It is difficult to assign a numerical value to something that you have emotional ties to. If the item is a family heirloom or holds important memories you may value it as more expensive than it is.
• Estimated value: When you do not know what you paid for an item or where it came from it can be hard to determine a value. You may be forced to estimate and it can be difficult or impossible to determine if you are over or underestimating the value.

How Can You Determine the Value of Assets During a Divorce?

There are many ways that assets can be valued to ensure that both you and your spouse are awarded a fair and equitable amount of property during your divorce. You should hire an attorney during your divorce to ensure your rights are protected. With the help of your lawyer, you can work with a team of professionals to evaluate the value of your assets. Use a real estate appraiser for your home, and other experienced professionals for more specific or niche items you may have. Bring your vehicles to a dealer or consult vehicle valuation companies to assess how much your cars are worth.

With the help of professionals and by working with your spouse and their legal team you can assess the value of your property and ensure you are dividing it in a way that is fair for both parties.