Illinois Divorce Asset Valuation
Valuation Date for Illinois Divorce Assets
Under Illinois law, assets in a divorce are valued as of the date of trial, or as close to it as possible. Assigning value to an asset can sometimes be difficult, either due to circumstances (the trial date is postponed the day before) or the type of asset (stock prices fluctuate based on changing markets).
To eliminate some of the potential difficulties, the parties can agree on a valuation date. For example, a mutual fund will be valued based on the previous quarterly statement.
Determination Valuation for Illinois Divorce Assets
Real property. Valuing real property can be difficult, since value is based on a number of factors including market demand and the sale price of comparable properties. If you plan to sell the house and split the proceeds, you may able to agree on a sales price based upon the opinion of a qualified real estate agent.
Difficulties can arise, however, when one party plans to keep the house. In these situations, the person getting the house wants its value to be low, so he or she can receive additional marital assets. However, the party not receiving the house wants a higher value assigned to the home to retain more marital assets. In these instances, agreeing on a price can be difficult, so a qualified property appraisal may be required. If a couple cannot agree on an appraiser, each party can choose his or her own appraiser. These two appraisers then select a third appraiser. The value of the three appraisals can then be averaged to arrive at the home’s value.
Business interest. If either party owns or is part of a business, whether a partnership, corporation, limited liability company or sole proprietorship, the interest in that business must be assigned a value. Business valuation is based on a variety of factors, including inventory or stock on hand, cash on hand, revenue and goodwill. Valuation can also differ depending on whether it is valued using an income (future income stream is discounted to present-day value) or market (valuation dependent on sales of comparable businesses) approach. A qualified business appraiser will be necessary to accurately value the business.
Stock portfolios. Stock values can fluctuate wildly from day to day, thus making it difficult to plan for trial. Many stock portfolios issue monthly or quarterly statements, which are a good way to assign value to these assets in anticipation of trial.
Retirement assets. Like stock portfolios, most retirement accounts issue at least quarterly statements that can be used to determine value ahead of trial. However, certain retirement assets like a 401(k), profit-sharing and defined benefit or pension plans require a qualified domestic relations order (QDRO) to divide the assets.
Palatine Divorce Attorney
Getting divorced involves more than simply filing papers with the courthouse. Proper valuation of marital assets is necessary in order to obtain a fair and equitable division of assets. Nicholas W. Richardson is experienced in handling all types of asset valuation, and will work closely with qualified appraisers in order to get the best valuation for your assets. Contact a Palatine divorce attorney at the office today to schedule a free consultation.