What You Need to Know About Valuing Your Assets in a California Divorce
It is beneficial for one to secure their finances during a divorce. Here’s how to value your assets in a California divorce.
During a divorce, equitable division of assets is required. Therefore, spouses must determine the value of their assets by understanding how assets are calculated in a California divorce. Most assets must be valued at the time of one’s divorce trial. Since most divorce cases do not go to trial, this means that the value of assets must be determined as the process goes along.
Related: How to Protect Your Assets in a California Divorce
Determining the Value of an Asset
Being transparent with one’s spouse and the court about the value of marital assets allows for fair division of marital property. Here are the steps to follow when determining the value of a marital asset in a California divorce:
1. Discuss interests with one’s spouse.
California courts allow spouses to discuss their interests before the intervention of a judge. In many cases, couples can divide assets without court intervention. In cases like these, it may not be necessary to determine the value of any marital asset; mediation with an attorney may assist the couple in deciding a fair distribution of assets.
Related: Divorce Mediation in California: What You Need to Know
2. Get a real estate appraisal.
If the couple cannot agree on property division, a judge will become involved. It is important for the couple to begin evaluating their marital assets by scheduling a home appraisal. An appraisal from an unbiased third party is required to know the value of one’s home.
3. Calculate assets of significant value.
The value of most assets do not need to be determined for fair distribution of marital property. For example, objects such as furniture and clothing do not need to be evaluated. Instead, the couple should focus on objects of high value such as jewelry, artwork, businesses, and vehicles.
4. Add up bank accounts and other financial assets.
If stocks are shared, consult a financial advisor to give accurate values of their current worth. It is also important that the couple calculates their marital debt to allow for a fair distribution of the debt as well.
5. Evaluate a business, if applicable.
If spouses own a business together, it is important to calculate the amount of each spouse’s ownership interest. A forensic accountant may be necessary to connect the debt in comparison to the profit of the business. Working with professionals can help a couple achieve an accurate evaluation of all their marital property during a California divorce.
Related: Dividing Your Business in a California Divorce
FAQs About How to Value Your Assets in a California Divorce
Are marital assets always split 50/50 in a California divorce?
In California, marital assets are divided 50/50 unless the couple can reach a separate agreement without the intervention of a judge.
Related: Postnuptial Agreements in California: Is It Right For You?
Are household items split in a divorce?
If a couple cannot divide their household items equally or cannot agree, a judge will divide the household items 50/50.
Contact Us
If you need to value your assets during a divorce in California, contact us. We’ll get you in touch with the right attorney to help value and protect your assets. Get your free consultation with one of our Property Division Attorneys in California today!