How Are Complex Assets Valuated in a Divorce?

 Posted on September 16,2022 in Divorce

After many years of marriage, a couple’s asset portfolio is often complex and made up of both personal and marital property. This is especially true if a couple was married in later adulthood when each partner owned a significant number of private assets and later inherited further assets. While some of a couple’s asset portfolio is likely protected in a prenuptial agreement, this does not typically prevent or proscribe the division of assets a couple accumulated over the course of their marriage, nor will it usually detail what to do with assets that may have become commingled over many years. To learn more about how complex and high-value assets are handled in an Illinois divorce, read this brief overview and then contact an experienced divorce attorney for help.

What Are Complex Assets?

The easiest way to define a complex asset is to define what it is not: Cash, savings accounts, and other liquid assets with a definitive value are not complex assets, even if they are of significant worth. Complex assets, instead, are assets that are made up of many parts: investment portfolios, family businesses, collections, and other assets which need to have more than one component assessed. Valuing these assets takes time and usually requires the help of a specialist.

Do I Need to Value Personal Assets in a Divorce?

Even if you are certain that a portion of your asset portfolio is your private property, you still need to assess its value and include it in your financial affidavit. Rarely will judges reach into an individual’s private finances during a divorce, but an individual’s overall personal financial health is often part of making child support and spousal support calculations.

How Can We Value Our Complex Assets?

The first thing a divorcing couple must do is account for all of their assets. Hiding assets rarely pays off and can result in serious court sanctions, so aim for full disclosure. Once all assets are present and accounted for, each asset must be determined to be separate or marital property. Spouses often disagree about what is jointly and separately owned; it is not necessarily essential to definitively categorize personal vs. marital property right away, but you should know what you plan to claim as marital property.

Next, professionals must be consulted to determine how to assess the value of each asset. For example, a small business may require a different valuation methodology that depends on the nature of the business, while collections may require extensive research into highly specialized selling platforms to get an accurate assessment. If complex assets are liable to change value regularly, such as an investment portfolio, the couple will choose a date and the value of the asset on that date remains as such for the purposes of negotiation.

Meet with an Arlington Heights Asset Division Lawyer

If you are anticipating a high-conflict divorce in which complex assets need to be valued and divided, get help from the experienced team of Arlington Heights asset division attorneys with A. Traub & Associates. We have helped many high-net-worth individuals tackle even the most difficult asset portfolios and reach a favorable divorce decree. Call us today at 847-749-4182 to schedule a comprehensive consultation, meet our team, and get a sense of how we would manage your case.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000