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  • Calculating Past Asset Value

    I know that this is not a 'science' and there are many factors to consider, but I'm looking for something general..

    There is something that I need to verify in terms of my ex's financial disclosure.

    She claims her 2005 car in 2006 as an asset of $10,000 ($31k sticker price).

    She buys a new car in January of 2010 and I have proof that the dealer has given her a $10k trade-in allowance.

    That having been said, the one thing that CAN be said proved with evidence is that the vehicle had a $10,000 asset value in 2010 which leads me to question how it could be listed as being the same asset value on the valuation date and that just can't be. My thinking being that if a vehicle has $10k of asset in January of 2010, then the asset value on the valuation date must have been higher, it should have been higher by the amount that it had been depreciated by between Oct 2006 and Jan 2010 if you get my thinking. The problem is how to establish the value of this asset in the past. I know that there won't be an exact science in an appraisal - especially in the past, but I would position it that the asset value probably should have been at least $14,000 in October of 2006.

    I can't quantify of justify how I come up with $14k though, but it "feels" right. Any thoughts on how I can frame my argument to support my assertion that the asset value MUST have been much higher than she had calculated?

    By the way, I do have a black book sheet from them in the fall of 2007 that claims the the car has a black book value of $8600 but I consider that invalid since 2.5 years later, the actual value she derived from the asset was higher, and it was 2.5 years later.

  • #2
    Will it cost you more than $4k to reopen everything?

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    • #3
      inflated numbers

      from what i have read - if a financial number does not rub right and you can justify a number with the paper work you do have - if you are mediating bring it up. If you are in front of the judge - bring it up. Do your best to present a compelling arguement and the judge has the law to make a decision on the proof presented. It may be a small number - but if you stack 10 of them together you end up with a $40,000 significant one! You did the work - present it. (and if she is willing to pay the $400 to have an official apprasail done - may be impossible in the past........ which makes your "proof" worthy of consideration.)

      Keep in mind after all that - that the numbers on the sales document are just that - numbers. Nowhere in the sales doc will you see a phase of "based on the appraised value of...... 10K. The top number was padded which left room for an inflated trade-in. A good solid un-inflated top number would not leave room for an inflated trade-in too. That's if they want to make money to allow them to remain in business.

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      • #4
        Originally posted by Rioe View Post
        Will it cost you more than $4k to reopen everything?
        There is no cost to review - this is ongoing litigation.

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        • #5
          Originally posted by Dd1 View Post
          from what i have read - if a financial number does not rub right and you can justify a number with the paper work you do have - if you are mediating bring it up. If you are in front of the judge - bring it up. Do your best to present a compelling arguement and the judge has the law to make a decision on the proof presented. It may be a small number - but if you stack 10 of them together you end up with a $40,000 significant one! You did the work - present it. (and if she is willing to pay the $400 to have an official apprasail done - may be impossible in the past........ which makes your "proof" worthy of consideration.)

          Keep in mind after all that - that the numbers on the sales document are just that - numbers. Nowhere in the sales doc will you see a phase of "based on the appraised value of...... 10K. The top number was padded which left room for an inflated trade-in. A good solid un-inflated top number would not leave room for an inflated trade-in too. That's if they want to make money to allow them to remain in business.
          Thanks for the response. Yes - I totally agree that the trade-in value isn't necessarily reflective of the vehicle's true worth, but then again, neither is the black book value. My argument would be that it is clear that the dealer gave her $10,000 for the trade-in. That is fact. My position is because of this, in 2010, this means that the car was a $10,000 asset regardless of if that was inflated, it's money she received from the dealer. Following that (faulty? lol) logic, I'd want to go back in the past and try to get a sense as to what she would have gotten for the trade in, that is the true asset value. However, as I said, this will be difficult to determine, if not impossible, but at the very least, I'd have a position that if she had a hard asset of $10,000 in 2010, then it's unreasonable to list a depreciated asset 2.5 years earlier at $10,000 - the trade in value (inflated or not) would have at least been a few thousand more.

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