How to Figure Out the Value of Your Assets in a North Carolina Divorce
Some assets are difficult to assess in a North Carolina divorce. You may have all kinds of possessions, investments, and properties, especially if you are a high-net-worth individual. The value of these assets may change depending on who you ask, and when you ask. If you are going through a divorce, it can be frustrating to wait around while these assets are valued. On the other hand, the value of these assets can have a tremendous impact on the outcome of your divorce. When you are dealing with properties that are worth millions of dollars, even a few percentage points can result in serious gains or losses for either spouse.
So, how exactly are assets valued in a North Carolina divorce? If you are trying to figure all of this out, the best thing you can do is get in touch with a qualified divorce attorney in North Carolina. These legal professionals can assess your unique situation and help you make the right decisions as you move forward. During a consultation, your attorney can learn all about your specific circumstances, including the assets that are going to be divided. They can then explain how these assets will be valued and divided.The Date of Separation is Important
The first thing you need to know about asset valuation in North Carolina is that everything revolves around the date of separation. The date of separation is the specific day that spouses stop living together and stop behaving as a married couple. The separation date is important because everything is calculated from this specific moment in time. When you are dealing with assets that change considerably in value over a relatively short period of time, pinning everything down to a specific date is important.
For example, a spouse might have shares that drop in value before the separation date. If these shares were acquired before the marriage, they classify as separate assets - but any increase in value may be considered a marital asset. If these shares then suddenly increase in value after the separation date, the spouse who initially acquired them would have the ability to keep all of the profit for themselves.
The same general logic applies to all assets. The real estate market can be just as volatile as the stock market during certain periods, so the separation date is equally important with these assets, as well. Bitcoin might be another example of when separation dates are incredibly important, especially in the modern era. If one spouse owns a business, the separation date may also play a very important role in determining the value of the company. A clever spouse may make sure that their separation date is as financially beneficial as possible based on their unique circumstances and assets. On the other hand, both spouses may mutually agree that a certain date is most beneficial for both parties, based on assets like RRSPs and stocks.Determining the Value of Real Estate
There are a number of strategies that the court might use to determine the value of real estate. The simplest strategy is to simply rely upon the testimony of the spouses. Both parties may want to avoid appraisal fees, and they may both feel that they have a general idea of how much their property is worth. If these spouses disagree on the true value of real estate, other strategies may be required:
- The Cost Approach: This is based on the fair market value of the vacant land and how much it would cost to replace the buildings with modern materials and design techniques.
- Income Approach: The value is determined based on the rental or lease income provided by similar properties in the same area. This strategy has been criticized because it fails to take into account other important factors, like the age of the building or the absence of a viable market.
- Market Approach: The value is determined based on the sale of comparable homes during the same period of time and in the same general location.
If you have been searching the North Carolina area for a qualified, experienced divorce attorney, look no further than Arnold & Smith, PLLC. We have helped many spouses deal with divorce-related legal issues in the Tar Heel State, including issues related to complex property division. If you and your spouse are high-net-worth individuals, understanding how your assets are valued is especially important. Remember, you can exert a considerable degree of control over how this situation plays out. We will help you reach a positive legal outcome. Reach out and book your consultation today.