Divorce is not an easy path for anyone. The emotional, financial and practical matters that have been linked together for so long need to be untangled, a process that will challenge anyone involved.
There are, however, some factors that can make a separation more complicated than normal. Frequently, this is due to the inclusion of valuable, complex assets that have to be divided some way, somehow. Key to effectively – and fairly – divvying up this property is getting an accurate valuation.
Examples of complex assets
Under Tennessee divorce law, property division should be “equitable.” That means marital assets need to be separated in a way that is fair to both sides. Oftentimes, this is based in large part on an asset’s monetary value.
But what happens when that monetary value isn’t clear?
One of the trickiest aspects of a high-asset divorce is identifying and properly valuing these items. Some examples of assets that require extra care and attention during valuation, as outlined in this Forbes story, include:
- Stock options
- Deferred compensation
- Business ownership and interests
- A professional practice
- Retirement accounts
- Insurance plans
- Property located in other jurisdictions
- Valuable collectibles or rarities
- Assets in a trust
Determining the value of these types of complex property is a significant undertaking, and one you should not tackle on your own.
Calling upon the proper experts
In order to accurately value these complex assets, you should lean on knowledgeable professionals who understand the ins and outs of such a task. You likely want an experienced divorce attorney that can identify not just when another specialist might be needed, but what type of expert is best-suited for the task. This might involve a business valuation expert, a CPA or a forensic accountant, for example.
Severely undervaluing or overvaluing a piece of marital property can have long-lasting consequences. In some cases, an asset’s value might be disputed by the other party, requiring a clear explanation and defense on your part. And even seemingly innocuous pieces of a property division agreement could have unforeseen ripple effects.
