How Are Complex Assets Valued in an Illinois Divorce?

 Posted on June 22, 2024 in Division of Assets

One of the most time-consuming parts of a divorce is property division, when the spouses divide their marital property between themselves. Illinois law defines marital property as assets that either spouse acquired during the marriage, with some exceptions. If a spouse bought or received something of value during the marriage, it usually belongs to both spouses and must be divided in a divorce.

Some divorces, however, involve complex marital assets. In these cases, the divorce process takes more time and may involve financial experts such as forensic accountants. Your Illinois complex asset attorney will work closely with these experts to make sure your assets are valued correctly and distributed fairly.

What Is a Complex Asset?

A complex asset is a possession that is difficult to divide, whether because it has a high value or because it has multiple components. Examples of complex assets include:

• Real estate properties

• Digital assets, such as cryptocurrencies

• Businesses

• Retirement accounts

• Stocks and bonds

• Investments

• Intellectual properties

These assets can be very difficult to split. Sometimes, this is because the value of an asset can fluctuate significantly. An example of this is cryptocurrency, which is often volatile. An asset can also be difficult to divide because of its many parts, like a business.

First, however, the asset needs to be valued.

How Are Complex Assets Valued?

Not all complex assets are the same, and some are valued differently than others. A business, for example, can be valued in three different ways:

• Market approach: The business is compared to other companies that were recently sold and is assessed for its fair market value.

• Asset approach: The assets belonging to the business are appraised. These include things like real estate, office equipment, shares, holdings, and intellectual property.

• Income approach: The business is valued by how much revenue it brings in, its profitability, and other related factors. This is the most common way to value a business in a divorce.

A house, on the other hand, is usually appraised according to its fair market value. Assets like houses and businesses, however, do not usually experience rapid changes in value. Complex assets like investment portfolios and cryptocurrencies are sometimes subject to sudden fluctuations in value and need to be appraised by professionals.

Contact a Naperville, IL Divorce Attorney

Going through a divorce that involves complex assets requires more attention and care than typical property division procedures. It may also require the involvement of a valuation expert or forensic accountant. These professionals will work closely with your DuPage County, IL asset division attorney to properly value and divide your marital assets.

At Pesce Law Group, P.C., our attorneys are not only highly experienced in complex assets divorces but will also connect you with excellent financial experts as needed. We will work with them to safeguard your interests and make sure the property is divided fairly. Call 630-352-2240 for a free consultation today.