Some divorcing couples in Washington assume that they can handle the process of marital dissolution on their own. They tried to negotiate their own arrangements for property division. They may also try to settle matters related to parental rights and responsibilities without the guidance of a legal professional.
Ultimately, they might make significant mistakes and oversights because they don’t have help. People may oversimplify the state’s property division rule or rush through the process of determining what assets are worth. One spouse might make major financial concessions that leave them with less than they deserve.
Under the unique property division statutes in Washington, both spouses typically have an interest in assets accumulated during the marriage, as well as any marital income. To properly divide assets, spouses need to know what they are worth. Determining that may require agreeing on a valuation date.
What is a valuation date?
A valuation date is a specific date that people reference when estimating the fair market value of assets. In scenarios where spouses cannot directly divide assets, they need to know what they are worth to address them during the property division process.
High-value resources, including stocks, real estate and businesses, fluctuate based on numerous economic factors. A valuation date is a specific, agreed-upon date that spouses can use when referencing economic factors and establishing asset values. Valuation dates make it easier for professionals to accurately set a fair market value for marital property by reviewing economic conditions on that specific date.
Without a valuation date, the spouses may end up facing protracted conflict regarding asset valuation. They may look at details from different dates, which can make it very difficult to agree on the value of assets and therefore how to divide them appropriately.
Property division proceedings are often far more complex than people expect. There’s much more involved in the process than simply splitting everything in half. People with high-value marital property often need the support of a legal professional when navigating asset division matters and other key elements of an upcoming divorce, and that’s okay. Learning more about the nuances of asset division can help people prepare for negotiations or develop a counter-proposal for a suggested settlement.
