If you have shopped for groceries, a used car or virtually anything else lately, you undoubtedly have noticed an increase in the cost of consumer goods. In fact, according to reporting from CNBC, prices have jumped 7.5% in the last year alone. This level of inflation is the highest in 40 years.
In the lead-up to your divorce, it is advisable to gather financial records and inventory both separate and marital property. To better position yourself to negotiate a divorce settlement, you should also obtain a realistic valuation of your assets. You may have to take this step more than once, though.
The length of your divorce proceedings
Ending a marriage is not often a quick process, but the length of your divorce proceedings depends on whether you choose an uncontested or contested one. Finalizing an uncontested divorce, where you and your spouse settle many or all divorce-related matters outside the courtroom, typically takes about three months.
With a contested divorce, however, you may spend up to two years waiting for the end of your marriage to become official. During that time, the economy is likely to change considerably. Your divorce and post-divorce goals also may transform.
Economic factors and asset valuation
There is a great deal going on in the world currently. The American Bar Association has an interesting article about how economic factors affect asset valuation during a divorce. This article says inflation, consumer demand, business prospects and other economic characteristics may drive the value of marital assets upward or downward quickly.
Ultimately, because the economy appears to be shifting rapidly, it probably makes sense to value assets at a couple of different times during your settlement negotiations.
