How to liquidating assets
With community property distribution, all assets accumulated by the parties during the course of the marriage are considered owned jointly by them.
Courts basically add up the value of the assets and then divide that in half, distributing one half of the assets to each party.
Whether they live in an equitable distribution or community property state, the parties can choose to negotiate their own property settlement that courts will honor.
Their distribution agreement does not have to follow the laws of their state.
In United Kingdom and United States law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed.
Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.
In awarding spousal and child support, the courts in a community property state may consider how long the couple has been married, the age of each party or ability of either one to be employed, based on their health or employment background, even though these factors are not considered in the distribution of assets.
The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.
Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors, see below).
"Not only are most courts restricted to what they can do to value assets, divide assets and consider potential tax effect, but judges have limited time to focus on technical and financial nuances," Marcyan said.
In collaborative, negotiated settlements, parties can apply valuations that a judge may not be permitted to take (e.g., personal goodwill, fair market value, fair value).