How does the Court Calculate Speculative Assets?
For community property, the court must ascertain a value of the property so that it can make a proper division. For this reason it is important, if you are divorcing or considering divorce, to maintain good written records documenting any speculative assets. Generally, the valuation is done at the time of trial or as close to that time as is possible. The court will not allow one spouse to benefit from confusion if that person is responsible for the confusion as to valuation. What this means is that if no good information on valuation is available at trial, then the other party may use information that is available earlier, even if this presents a better picture than what is accurate. In the case of “In re Marriage of Nelson,” the court accepted an earlier valuation for this reason, even though by the time of divorce the business had been shut down. Without good records you risk being at the mercy of your former spouse’s experts and risk suffering financially for this reason. Especially when the value of an asset is difficult to determine and may change in the course of proceedings, accurate record keeping is essential. Contact Sagaria Law today to schedule an initial consultation so that you can avoid this and other potential pitfalls in your divorce.