In both of these examples, the actions of the owner influenced the fair market value of the asset to increase. In both of these examples the fair market value most likely would increase, but a decreasing asset may also be considered active.

When dividing an active asset in divorce, it can be very challenging to put a proper value on it on a specific date, especially if a substantial change occurs close to that date.

For example, a husband’s company is valued at $500,000 on 3/20/2006 and on 3/21/2006, just one day later, the company acquires two major clients with each having a two-year contract. In just one day the value of the company nearly doubles. This would be considered a very active asset, which requires much attention in resolving what is fair and equitable in a property distribution for divorce.

Don't Forget to Visit Our Online Support Community

Your Suggestion

1. Dividing the Assets
   A divorce financial analyst can help a divorcing couple evaluate their joint assets, advising about the pros and cons of each decision.
   Contributed on 4/3/2007 by: DivorceDex.com Staff

   Category: Financial Planning  (Applicable in All States)
2. Postponing Income or Business Activity
   A sneaky trick that many spouses undertake is attempting to postpone income or actions that would cause an active asset (like a business) to increase in value during the divorce process. For example, a divorcing spouse may decide to close a large business deal at a later date after his or her business has been valued for divorce purposes because the deal increases the value of the business substantially.
   Contributed on 4/3/2007 by: DivorceDex.com Staff

   Category: Property Valuations  (Applicable in All States)

Contribute Tip/Fact