Valuation date refers to a point in time in which an asset is assigned a dollar value. It is a term often used in reference to valuation of assets to be distributed upon occurrence of an event, or a periodic determination of worth for reporting purposes. For example, it may be the designated time of closing (monthly, quarterly, etc.) for determination of account balances in a defined-contribution or defined benefit plan. The general rule will be that a court will most strongly consider the value at the date of distribution.
By having within its discretionary power the ability to determine the valuation dates, the court has another tool in which to bring equity to asset distribution. For example, in a divorce matter, the court may be trying to determine how to distribute assets such as a family home or securities, commercial real estate or business goodwill. State law varies on when the valuation date is in a divorce case. Most often, states use either the trial date, the date of final separation, or date of divorce complaint asthe valuation date. However, the date may be discretionary in some states. Local laws should be consulted for specific requirements in your area.
Relevant legal forms include:
Chapter 13 Plan [Motion for 3012 Valuation Hearing]
Valuation of Share of Partner
Discovery - Requests for Business Valuation Information
Michigan Real Estate Tax Valuation Affidavit
