Valuation of Marital Property in Divorce Proceedings

One of the most critical parts of the property distribution process in divorce is ensuring that the marital assets have been properly valued. Either an overvaluation or an undervaluation of the spouses' marital property can prevent the parties from receiving their fair share when their assets are divided.

Date of Valuation With Respect to Property Division in Divorce

One important factor in property division in divorce is the date of valuation of the spouses' assets and liabilities for purposes of dividing marital property. The courts must consider the date of valuation in order to establish a consistent basis for determining a fair distribution of marital property. Fixing values for different assets and liabilities at different times can affect the true value of assets and liabilities that a spouse receives.

Grounds for Annulment: Duress, Force, and Fraud

To base annulment on force, restraint, or threats, the duress must have been the inducing cause of the marriage such that the consent to marry would not have been given but for the duress. Moreover, the force or duress must continue to the time of the wedding ceremony. Annulment generally will not be granted for duress if the coerced spouse has the ability to escape or overcome the force or duress.

Impotence as Grounds for Annulment of Marriage

In some states, impotency can be grounds for annulment. If a spouse is physically impotent and the other spouse was unaware of the impotency prior to the marriage, the marriage can be voidable in some states. If a marriage was never consummated, this can constitute viable grounds for annulment. Impotency occurring after marriage is generally not in itself ground for annulment.

Valuation of Closely Held Businesses in Divorce Proceedings

Generally, divorce cases involving thorny property issues can be complicated to resolve. This especially is true when the marital estate includes a closely-held business. A closely-held business usually presents one of two scenarios in the divorce context. The business may be tied to one spouse who is responsible for the business's success. Distribution of the business to one spouse often creates asset allocation and business valuation issues. It presents the problem of valuing the business and structuring the parties' assets and liabilities in order to provide the other spouse with a comparably valued property distribution. If the business depends on the operating spouse's good will and management, which many closely-held businesses do, then the true value can suffer under the emotional stress common in divorce even if the business is distributed to the key-person spouse. A business having one value when operated by the key-person spouse can have a far different value when distributed to the non-operating spouse.