Although many divorcing couples want to keep their circumstances as peaceful as possible, arranging for an uncontested divorce is more challenging than people may expect. They have many different issues to negotiate and many agreements to establish before they can file paperwork pursuing an uncontested divorce.
Disputes about who retains specific assets frequently arise. Spouses may also disagree about what is fair and reasonable given the contents of the marital estate. They usually need to agree on the value of different assets to allocate them in a fair manner. Spouses may need to agree to a valuation date to facilitate their property division negotiations.
Asset values change over time
The longer spouses spend negotiating their divorce terms, the more the value of their marital estate may shift during that process. Both spouses generally need to agree on a specific fair market value for their home and any other significant resources.
Valuation dates make it easier for both spouses to reach similar final values when estimating what their assets are worth. Factors, including the state of the economy, impact the valuation process.
Spouses who agree on a specific valuation date may find it easier to arrive at similar estimates regarding the value of their high-worth shared resources. Frequently, spouses use the date of their initial separation or when they agreed to divorce as the valuation date, although they have the discretion to choose a date that they both agree is appropriate.
Understanding the steps necessary to achieve an amicable divorce can help people prevent unnecessary divorce disputes. Valuation dates can play an important role in keeping property division negotiations amicable.