In Washington State, which follows community property laws, all marital assets are typically split equally in the event of a divorce unless a court determines otherwise or spouses mutually agree to a relatively uneven division of their marital property.
Before a fair division can take place, both spouses must understand the true value of their shared property. Seeking professional asset valuation before a divorce helps to ensure accuracy, prevent disputes, and achieve a fair settlement in this regard.
Accuracy
Many divorcing couples underestimate the complexity of valuing their assets. While some items, such as bank accounts, feature clear balances, others—such as real estate, business interests, investments and personal property—may require professional assessment. Without an accurate valuation, one spouse may unknowingly accept a settlement that undervalues their share of their marital estate.
Professional appraisers and financial experts use industry standards and market conditions to determine an asset’s fair market value. This prevents either party from overestimating or underestimating their worth, which could lead to financial imbalances post-divorce.
Some assets require specialized valuation methods. For example:
- Real estate: A home’s value depends on location, market trends and property conditions.
- Businesses: Business interests require an in-depth financial analysis, including revenue, debts and projected earnings.
- Retirement accounts: Pension plans, 401(k)s and IRAs may need actuarial valuation to determine long-term worth.
- Collectibles and personal assets: Items such as jewelry, art and antiques require expert appraisal for proper valuation.
An accurate asset valuation gives both parties a strong foundation for negotiations. If mediation or collaborative divorce is an option, having clear asset values allows for constructive discussions and equitable compromises. Even if the case goes to court, judges prefer factual, well-documented valuations rather than estimates or disputed claims.
Fairness
One of the most common sources of conflict in divorce is asset division. If spouses cannot agree on the value of a home, business or retirement account, it can lead to lengthy legal battles. Having a professional valuation eliminates guesswork and provides objective figures that each couple’s legal team, courts and mediators can rely on. This can speed up the divorce process and reduce the costs associated with drawn-out disputes.
Additionally, if one spouse suspects the other of hiding assets or undervaluing property, a professional valuation can uncover discrepancies. Financial experts can trace income, business earnings and investments, better ensuring that all assets are accounted for and fairly divided.
