Value before or after determination?

[kroper]

What is the name of your state (only U.S. law)? Oklahoma
In OK, is an asset determined community/marital or separate property and then valued OR valued and then determined?

 

[mistoffolees]

What is the name of your state (only U.S. law)? Oklahoma
In OK, is an asset determined community/marital or separate property and then valued OR valued and then determined?

Any given asset is either separate or marital - and it has some value. The two issues are completely unrelated.

As a practical matter, since only marital property can be divided during a divorce, it is necessary to determine what is marital before division can occur, but it technically doesn't matter whether you determine value first or not.

 

[kroper]

Thanks for the reply, mistoffolees. The asset in question is a business that I was doing before the marriage that has not been determined to be a marital asset by the court. She wants half of it. I don't have a problem about giving her 50% of the net value of the business assets accumulated during our 8 yr. marriage. I just don't think I should have to pay for a valuation of the entire business before it, in its entirety or some % of it, is determined to be a marital asset. It is kinda the cart before the horse...??

 

[LdiJ]

Thanks for the reply, mistoffolees. The asset in question is a business that I was doing before the marriage that has not been determined to be a marital asset by the court. She wants half of it. I don't have a problem about giving her 50% of the net value of the business assets accumulated during our 8 yr. marriage. I just don't think I should have to pay for a valuation of the entire business before it, in its entirety or some % of it, is determined to be a marital asset. It is kinda the cart before the horse...??

Would you rather than your stbx came up with a number out of the sky to put a value to the business, and the judge run with that because you didn't get an independent appraisal done?

 

[mistoffolees]

Thanks for the reply, mistoffolees. The asset in question is a business that I was doing before the marriage that has not been determined to be a marital asset by the court. She wants half of it. I don't have a problem about giving her 50% of the net value of the business assets accumulated during our 8 yr. marriage. I just don't think I should have to pay for a valuation of the entire business before it, in its entirety or some % of it, is determined to be a marital asset. It is kinda the cart before the horse...??

OK. If you don't want to have a professional value the business, I'll do it for you. The business is worth $2.573 million. ;-)

Once again, you're looking at two separate issues (actually, in this case, 3 separate issues). The answer to any one doesn't affect the answer to any other - especially since you're prepared to give her half of the increase in value of the business.

You need to know:
1. What was the value at the time of the marriage. Unless you had an appraisal done at that time, this will be no more than an estimate, anyway.
2. What is the current value.
3. Is the increase in value marital property? However, since you're willing to give her half of the growth, this question becomes a moot point. To give her 1/2 of the increase, you need to know #1 and #2.

In the unlikely scenario that the court rules that she is entitled to 1/2 of the TOTAL business value, you STILL need #2 above.

So almost no matter what happens, you need an appraisal. That really needs to be done by an expert.