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One of the most essential matters you’ll deal with during divorce is the distribution of property and assets. While a major topic in New York, it can also be one of the most challenging, especially in high-asset divorce cases. Part of the difficulty of property division is asset valuation.
Fortunately, an attorney experienced with divorce cases featuring expansive assets can provide great assistance during your case. Because high-asset divorces can be tough to navigate, it’s best to seek legal representation for more favorable results.
Take a closer look at why asset valuation has such a substantial impact on New York divorces.
Understanding Property and Asset Division in New York
First and foremost, it’s helpful to understand how property division works in New York. Concerning asset and debt distribution, states are either equitable distribution or community property states. New York is an equitable distribution state.
In equitable distribution states, property and assets are divided after evaluating several details, including each spouse’s:
- Age and health
- Financial situations
- Contributions to the marriage
- Incomes and earning potential
The length of the marriage may also be considered.
Only marital property is available for distribution. Marital property is property that is acquired by spouses during the marriage. In most cases, separate property remains separate, which includes property owned by each spouse before the marriage and gifts or inheritances acquired at any point before or during the marriage.
Why Asset Valuation Matters in a Divorce Case
When you’re involved in a divorce case, it’s critical to know the value of your assets for several reasons:
- Gain a detailed financial picture
- Ensure fairness
- Maintain accuracy
- Meet legal requirements
Understanding spouses’ finances is important in any divorce case, and determining the value of assets is part of the whole financial picture. Proper asset valuation also helps ensure property is divided fairly and that each spouse gets what they are entitled to.
Asset valuation serves to maintain accuracy as well. You can’t distribute assets based on what you think or feel an asset is worth, especially because assets hold different values for different people.
Keep in mind that courts require asset valuation for divorce proceedings. While it may be one of the most time-consuming parts of your divorce, acquiring proper asset valuations is crucial to the success of your case.
Factors Influencing Divorce Asset Valuation
The value of an asset varies based on specific details, some of which include:
- The type of asset, such as liquid or real estate
- Tax implications, such as capital gains tax incurred when selling stock
- Sentimental value
Determining the value of an asset can be tough, especially with so many factors affecting the outcome. It’s helpful to use outside resources, like an appraiser, to get a more accurate valuation.
Determining the Value of Assets for Your Divorce
When you’re going through a divorce and you’re faced with asset valuation, you should take the following steps:
- List and categorize all of your assets, including real estate and stocks
- Gather documentation, including receipts and titles
- Decide the date of valuation, or the day the court chooses to determine asset values
- Determine your assets’ values with proper assistance
Once you know what your assets are worth, you can proceed with negotiating the fair division of your property and assets.
Consult a Divorce Attorney for Help With Asset Valuation
Asset valuation is one of the trickiest parts of a divorce. The divorce attorneys at Aiello & DiFalco LLP have extensive experience helping clients obtain proper valuations and handling asset distribution. If you’re located in Garden City or Brooklyn, NY, contact us today to get started.