# USAAsset valuation in divorce

#### lion1234

Trying to understand how to value an asset in divorce.

Say as of 1/1/2020, an asset was worth \$1000. Of this, \$500 was deemed (by forensic accountants) husband's premarital. Had the divorce taken place then and there, husband would get \$500 + half of marital portion (\$250), total of \$750, and wife would get half of marital portion (\$250).

Fast forward to present day. Asset is now worth \$2000, a gain of 100%. If valued as in above, husband would get \$500 + half of \$2000-\$500=\$750, a total of \$1250, and wife gets \$750.

This is straight forward, but does not account for premarital portion having participated in the growth of the asset. If we consider this, then premarital becomes \$1000 (same growth as the asset itself). This means husband would get \$2000-\$1000=\$1000, plus half of the remaining amount (\$500). Wife would get \$500.

Does anyone know which is the correct method?

Thank you.

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