Ohio divorces often involve the division of shared assets and property such as houses. You and your ex may also need to account for a significant amount of belongings, such as jewelry and artwork.
While valuing these items may seem like a secondary concern, it can be very important.
Equitable division of assets
Valuing belongings helps ensure that the division of assets is fair and equitable. These items may hold sentimental or financial value and can significantly impact the final property settlement. By accurately assessing their worth, both parties can reach a more balanced agreement.
Fewer conflicts and disputes
Without proper valuation, disagreements may arise over the value of personal items. These disputes can escalate the emotional turmoil of divorce. Valuation can provide an objective assessment that minimizes such conflicts.
Transparency in financial disclosures
Many divorce proceedings require full financial disclosure from both parties. Valuing personal belongings helps in meeting this requirement. It demonstrates that both spouses are willing to provide an accurate account of their assets, fostering trust in the negotiation process.
Protection of your rights
Without knowing the true value of personal belongings, you may unknowingly forfeit assets that rightfully belong to you. Valuation ensures that you receive your fair share of the marital estate. For example, larger-sized works from emerging artists can sell for $10,000 to $15,000 each, not an insignificant sum.
The valuation of personal items can have tax implications. If, for instance, one spouse receives valuable art or jewelry pieces, they may be subject to capital gains tax when selling or transferring these assets in the future. Knowing the value of these items allows for better tax planning.
Insurance and replacement
After the divorce, it is important to update insurance coverage to reflect the new ownership and value of assets. In case of loss or damage, knowing the value of these items helps in obtaining appropriate compensation or arranging replacements.
Hidden assets prevention
One spouse may attempt to hide or undervalue assets to gain an unfair advantage. Valuation can help uncover such attempts and account for all assets.
By acknowledging the significance of proper valuation, individuals going through a divorce can make the process more straightforward and less contentious. This ultimately allows for a smoother transition into the next phase of their lives.