Knowing what you and your spouse are worth is crucial in a divorce. Philosophical arguments about determining someone’s value aside, you need to put your worth into cold, hard figures.
As a couple, you are effectively worth the total of your assets minus your total debts. Some of that will be easy to calculate – for example, the contents of your bank accounts are self-evident, as is the money outstanding on your credit card. But most couples have plenty more assets, of a physical kind, which can be more challenging to price.
Here are some examples:
Artworks and antiques
Are those old wooden dining chairs just old wooden chairs? Or are they genuine 18th-century Shaker pieces that would fetch a hefty price tag at auction? Should you let your spouse keep that awful sculpture that they insisted you buy, or has its value increased considerably from the $250 you paid for it?
When did you last have your home valued? While getting a current valuation is reasonably simple, you might also want to look at the state of the housing market. Would you be willing to give your spouse the house in exchange for keeping the $500,00 bank account contents if you knew that house prices were about to rocket due to an incoming development?
What stage of life has your business reached? Has it peaked, or is there potential for it to triple over the next few years?
Sometimes, it is difficult to know your financial worth. Getting external help to value specific items helps ensure you don’t sell yourself short in your divorce.