In many contested divorce cases the date of valuation of assets can make a big difference in equitable distribution whether an asset is marital or non-marital. Determining the "cut-off" date is important. Not all assets/debts are treated the same so it is important to have a general understanding.
The basic rule is that the cutoff date for the accumulation of marital assets is the date of filing of a divorce summons or the mutual signing of a marital settlement or separation agreement (collectively referred to as the "commencement date"). Generally, assets acquired and kept separate prior to the date of marriage will remain separate but there are many exceptions and nuances that depend upon what happens to the asset during the marriage and whether marital monies were utilized to improve or increase the value of the asset. (This is a very big oversimplification and could be an entire separate blog.)
So for this blog I write assuming that the asset is completely marital property. Divorce law provides that different marital assets may have different valuation dates.
For example the residential home can be valued using the date of the requested appraisal, but if there is no resolution as to value the court will usually use the date of trial (not the date that the divorce was filed especially if the housing market has changed since the time of the appraisal). This is because most houses may change in value due to market conditions which lawyers refer to as "passive" appreciation/depreciation in value. The homeowner other than basic maintenance, mortgage payments and real estate taxes is not causing the asset to change.
Retirement assets such as IRA, 401k and pensions will generally have a cutoff valuation date based on the commencement date. The reason behind this is that new contributions to retirement accounts after the case has started are deemed to be after the breakdown of the "economic partnership" and therefore new deposited monies are not counted. However, the gains/losses on the marital portion are counted. So if a 401k was worth $100,000 on the date of commencement and two years later it is worth $110,000 there will be adjustments based upon how much new money was deposited and what change in value took place on the original money due to market fluctuations.
When there is a business to be valued or a partnership interest generally the cutoff date will be the date of commencement. Business interests are generally viewed as an asset that changes in value during the divorce proceedings due to "active" work or labor contributions of the owner/partner. However, businesses and partnership interests can have unique circumstances that affect value due to changes in profit due to market changes, technology changes, tariffs, competition, loss of a lease, loss of a major client, supply shortages and many other factors that give the court the discretion to use a later date if doing so is fair to the parties.
Clearly if there are valuation date issues in a divorce case it is best to have legal representation by an experienced matrimonial attorney as there is not one rule and one size for everyone.