When going through a divorce, one of the most stressful aspects can often be going through the process of dividing assets, especially when there are a lot of high-value assets to divide, such as multiple homes and cars. Over the years, married couples tend to become financially intertwined, and when children are involved, one parent might earn a significant portion of the household income while the other assumes child care-related duties. This can mean that dividing assets fairly can prove to be challenging.
One of the first steps in the division of assets is evaluating all of the assets and assigning a monetary value to all of them so that they can be objectively assessed. In order to do this, a valuation date must be assigned. This might seem simple, but it does have the potential to significantly affect the valuation amount of each asset.
When does the valuation of assets take place?
There are two main types of assets that need to valued during the divorce process. Active assets are those that can change value as a result of the owners' actions. For example, a business' value can change value significantly depending on the actions of the business owner; therefore, it is considered to be an active asset. However, a piece of land, for example, would be considered a passive asset since its value is largely determined by the market.
In general, active assets are valued as what their value was at the date of separation, and passive assets are valued on the date of the trial. If you want to know how valuation dates could affect your divorce in Ohio, it is important to learn more. An experienced divorce attorney can help you by providing advice and guidance.