Property Characterization, Valuation & Tracing

Pollitt & Stith are experienced in all aspects of complex, high-net-worth divorce litigation, including cases requiring property characterization, valuation, and asset tracing.

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Ethical and Strategic Protection of Your Best Interests in a Divorce

The experienced team at Pollitt & Stith comprises highly dedicated family law specialists who are experts at navigating the complexities of high-value asset divorce litigation. Our clients can expect meticulous attention to detail, responsive and empathetic teamwork, and a strategic focus that prioritizes their financial and emotional well-being. We have extensive expertise in property and business valuation issues and other complex matters intrinsic to high-net-worth divorce. Our reputation as leaders in the legal community is built on a history of successful outcomes through a mastery of advanced legal knowledge and a highly client-centric approach. We partner with you, providing dedicated advocacy, proactive legal strategies, and a path to a new beginning.

Consult Pollitt & Stith for Expert Handling of Property Characterization, Valuation, and Tracing Matters

We prepare for all challenges that may arise and take into consideration property characterization and valuation issues that could affect your outcome, such as:

Enlisting Assistance from Leading Specialists and Experts
Employing Legal Strategies that Prepare for Negotiations
Preparation for Tax Implications
Protection of Privacy Concerns

Ensuring Correct Property Characterization

The first step of accurate property characterization involves identifying community property and separate property. Unless another arrangement is in a marital agreement, assets acquired during the marriage are considered community property. Assets owned by one spouse before the marriage or inherited or explicitly gifted to one spouse during the marriage are separate property. Other situations can arise that require detailed examination and the possibility of tracing for fair division include:

Commingling:

Complex asset structures may have commingled separate property with community property, requiring forensic accounting or other careful review to characterize fairly.

Transmutation:

When a spouse’s name is added to the title of ownership of a property, or if there has been some other change in property character through agreement or action of the parties, separate property may have become community property.

Valuation of Assets

Once the property is correctly characterized as separate or community property, it must be accurately and fairly valued in preparation for division. Because many assets can fluctuate in value, the date of valuation set by the court can have significant impacts. Arizona law typically uses the date of trial for this date. Our knowledgeable attorneys advocate on clients’ behalf for a date of valuation that is in their favor and take into account fluctuations in value and tax considerations. While the valuation of liquid assets is straightforward, the valuation of art, collectibles, antiques, real estate, vehicles, businesses, investments, etc., requires appraisals and expert evaluations to determine their fair market value.

Tracing Identifies Commingled Property and Contributions for Reimbursement

It is common for separate and community property in marriages involving a high standard of living and high-value assets to become complexly commingled. Tracing identifies and claims separate property that has become part of community property. Similarly, if separate property funds, such as an inheritance, have been used for community purposes, the contributing spouse may seek reimbursement. To ensure accurate and fair characterization and valuation, our divorce attorneys employ meticulous tracing methods as well as experienced experts such as:

To ensure accurate and fair characterization and valuation, our divorce attorneys employ meticulous tracing methods as well as experienced experts such as:

Forensic Accountants
CPAs
Appraisers and Valuation Specialists
Financial Analysts
Private Investigators