How are assets and liabilities valued?
The short answer is that assets and liabilities are valued as of their fair market value. The fair market value for accounts such as bank accounts, 401ks, and even credit cards is simply the account balance on the date that you are going to use to determine your marital estate. We have another video that discusses what date you will use to determine your marital estate. For assets that don’t have an account statement you can use an appraisal. This is very common in real estate. However, in real estate you can also use a market analysis or a tax assessed value. An appraisal can also be used for personal property. Although, these values are typically just what you would receive for the personal property if you sold it at a garage sale, so it is often not worth while to have the personal property appraised. If your case involves a business you may have to have a business evaluation completed in order to determine what the value of that asset is.
– Answered by Jaimie Cairns of Cairns & Rabiola