Texas law requires an equitable division of marital assets in the event of a divorce. While this can provide immense benefit in fairly dividing the assets a couple has gained throughout their marriage, it does require the appraisal of both assets and liabilities for fair distribution. Contact a skilled property division lawyer for help understanding the appraisal of assets and liabilities in Frisco and how it can impact your divorce.
Each state sets its own regulations regarding the date of asset valuation during divorce. Because some assets can appreciate or depreciate rapidly, especially when it comes to investments, using the same date to value all assets can significantly aid in the fair distribution process. In Texas, the valuation date is generally the date of divorce or as close to it as possible.
The valuation of assets and liabilities in Frisco starts with clearly identifying all relevant assets and debts, including:
Clearly identifying all these elements can make it easier to get a fair estimate of their value.
Most of the time, asset worth is based on fair market value for the item, or the amount a reasonable person would be willing to pay to acquire it. In some cases, this may involve a simple look into the average value of the item. In other instances, including with artwork, collectibles, or unique items, divorcing partners in Frisco may decide to hire an appraiser to determine an asset’s value.
Liabilities can include a wide range of potential debts acquired during a marriage. They do not include debts that either spouse brought into the marriage or interest accrued on them throughout. However, liabilities may include:
Liabilities, like assets, are typically appraised and divided during a Frisco divorce.
Texas law does not require the equal distribution of assets in a divorce, meaning each spouse may not take precisely equal assets and debts from the marriage. Rather, it requires equitable distribution, or the fair division of both assets and debts that takes into account the needs, earning potential, and financial challenges each partner may face.
For example, a couple may decide that one spouse with very high credit card debt due to their personal spending habits will take their debts with them after the divorce. Former spouses may not receive the same assets, but will receive a fair percentage of all marital property.
The appraisal of assets and liabilities is often one of the more difficult and contentious parts of the divorce process. Often, both spouses want to take as much out of their marriage as possible to increase their odds of future financial success. If you are struggling with the appraisal of assets and liabilities in Frisco, or any other aspect of the divorce process, Towson Law Firm can help. Contact us today to learn how we could guide you through your divorce.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
