IN CALCULATING PERSONAL NET WORTH, HOW SHOULD ASSETS HELD BY SPOUSES OR OTHERS IN JOINT OR COMMUNITY PROPERTY BE COUNTED?
The basic principle in counting assets in the personal net worth calculation is to count the present value of assets attributable to the individual. If an asset is held as community property, or jointly (including a tenancy by the entireties) between two people, 50 percent of the value of the asset is normally attributed to each person. For example, suppose a woman owner of a firm applying for DBE certification has, with her husband, a $100,000 joint savings account. Half of this asset — $50,000 — would be counted toward her personal net worth. The HDOT would not count the full $100,000 toward her personal net worth. A legal instrument valid under state law can alter this normal attribution of assets between owners.
Related Questions
- IN CALCULATING PERSONAL NET WORTH, HOW SHOULD ASSETS HELD BY SPOUSES OR OTHERS IN JOINT OR COMMUNITY PROPERTY BE COUNTED?
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