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Complications in valuing assets in divorce

On Behalf of | Apr 26, 2018 | High Asset Divorce |

When a Pennsylvania couple ends their marriage, it is important to know the value of the marital assets for property division. In a high-asset divorce, this may be particularly complex.

An accountant can be a good choice if the asset that needs to be valued is something like a person’s share in a family business or a partnership. However, when it comes to other investment assets, a specialist could be needed.

There are several categories of assets where mistakes in valuation are often made. For some investment portfolios, it is important to work with a professional who can explain the conditions that accompany sales, transfer of ownership and distribution associated with these assets. Life insurance is another asset that is frequently undervalued. Even the people who own this asset often do not realize that its value has risen. Professionals who have backgrounds in trusts and insurance may be able to accurately value and explain how to divide this asset.

Lifestyle analysis is another element that is often overlooked. In determining the final settlement, examining how money was spent during the marriage may be particularly important if one spouse earns significantly more than the other.

One issue that may arise in a high-asset divorce is that each person will have separate valuation experts and those experts may not agree on the value of some assets. Another type of asset that may cause a problem of this sort is a valuable art collection. Disputes over asset value could delay a divorce. While it is important for people to protect their financial interests, divorces also become more costly the longer they last, so people might also want to consider at what point they are willing to compromise.