The disruptions caused by the COVID-19 pandemic could cause one partner’s assets to depreciate significantly. Assets can appreciate in rare cases. Even if the original arrangement reached a reasonable division, this distorts cash flows for divorcing couples.
In uncertain economic times, achieving an equal property division can be difficult. Due to such unexpected circumstances, the valuation of a company could change significantly within a matter of months.
This financial disparity may make a business partner feel short-changed in comparison to other marital assets that were previously of comparable value. To account for these changes, the asset allocation may need to be revisited.