When spouses divorce, they must decide how to split their property. Often, couples do not agree on the value of their belongings and depend on the courts to divide these assets.
To determine equal share, courts require the valuation of all marital property.
1. Specialists are necessary for accurate valuation
Appraisers and financial experts are essential in determining the value of marital assets. The net worth of items changes over time, and courts rely on accurate appraisals to decide how to disperse assets. If divorcing couples have any of the following items, they should plan on seeking the advice of specialists:
- high-value collections such as automobiles, sports memorabilia, art and jewelry
- Investment properties
- businesses
2. Illinois courts use fair market value to calculate worth
The fair cash value of an asset is how much that item could be sold for in the current market. This calculation is necessary for any property that spouses may not want to split in a divorce, such as personal businesses. The fair market value allows courts to allocate alternate property with a similar value to the other spouse.
3. Consistent valuation dates are necessary for equitable distribution
Illinois courts assign the date of trial, or another date agreed on by both parties, as the valuation date. These dates are essential because divorces can take months or years to finalize. During this time, the value of an item might increase or decrease, leaving one spouse with less equity. Having a standard valuation date benefits both parties.
Understanding the complex process of valuing property in a divorce can assure each spouse that they receive their equal share.