Under which circumstance should assets not be counted?

Assets should not be counted in situations like divorce, foreclosure, and bankruptcy due to the significant impact these circumstances have on a person's financial situation.

In the case of divorce, determining the actual available assets can be complex as the division of property and debts is often subject to negotiation and can change over time. Hence, it may not accurately reflect an individual's financial standing during the divorce proceedings.

Foreclosure represents a situation where the asset in question, typically a home, is being taken back by the lender due to unpaid mortgage payments. This process indicates that the individual no longer has ownership of the asset and therefore does not benefit from its value, which makes including it in asset calculations misleading.

Bankruptcy is a legal proceeding that allows individuals to discharge certain debts and can significantly alter an individual's asset situation. When someone files for bankruptcy, it may lead to the liquidation of assets to pay off creditors, and thus those assets shouldn't be counted as available wealth.

Each of these circumstances highlights significant financial challenges that affect whether certain assets are relevant or available in evaluating financial status. By excluding assets in these situations, financial assessments can more accurately reflect an individual's actual capacity to meet obligations or qualify for housing assistance, ensuring a more equitable evaluation.