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What is asset valuation in high-asset divorce?

When it comes to the topic of divorce, more and more people are willing to discuss what they went through with those involved in the process now. No longer is the word taboo. No longer do you have to quietly discuss divorce with friends and family. Openness is more common these days. So, what is asset valuation in high-asset divorce?

For starters, high-asset divorce involves an incredible amount of assets. We are talking millions of dollars in investments, property or real estate. Property can include cars, collections, watercraft and much more. All of these items must be valued during a divorce so that they can be divided equally among the two parties, especially if they were acquired during the life of the marriage.

There are two ways to describe a marital asset. The first is an active value, which is an increase caused by the direct action of a spouse. For example, the spouse deposits money into a savings account, increasing the balance. Another example is when a spouse conducts improvements to the home on his or her own or works in the family business daily.

The second way to describe an asset is passive value, which is an increase or decrease in the value of an asset not caused by a spouse. Instead, the value is affected by other entities, such as the stock market or someone else's work.

Have you filed for divorce in Fort Lauderdale? Are you headed for a high-asset divorce in Florida? Knowing what asset valuation is and how it occurs can be explained by an experienced divorce attorney.

Source: Investopedia, "Asset Valuation," accessed Aug. 24, 2017

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