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How are liabilities valued in divorce?

Liabilities refers to the financial obligations a person or company has, which includes debts and other incurred expenses. 

Parties must provide full and frank disclosure in their Form E, including all liabilities. For many, common liabilities will typically include mortgages, credit card debts, bank loans, and car finance. Such disclosure is essential in providing the court with a clear picture of the parties financial circumstances. They will consider any liabilities when determining a financial settlement, but their treatment of them will depend on what kind of liability it is. For example, the court generally distinguishes between hard and soft loans.  

To determine the value of the liabilities owed by a party, sufficient information as to the debts and expenses incurred is crucial. A simple calculation totalling such liabilities will then be undertaken.  

Vardags has years of expertise obtaining and defending valuations of various assets and liabilities. If you are considering or going through a divorce and require a valuation, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.

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