abandonment

Definitions (4)
Popular Terms
1. General: Voluntary disclaim of a right or interest (without transferring it to anyone else) in a property, accompanied by a clear act of abandoning that property. Such acts include continuous lack of use and/or maintenance, and failure to pay property taxes. The abandoned property may then be claimed by an occupier (see adverse possession) or may be appropriated by the state. However, obligations (debts, liens, taxes) associated with a property are not discharged when it is abandoned and remain the liability of the owner.
2. Accounting: Donation or voluntary disposal of a business asset where it is cheaper to abandon the asset than to restore or salvage it.
The book value of an abandoned asset is written off as a loss.
3. Futures: Expiration of an option instead of its exercise or sale.
4. Insurance: Right of the owner of an insured property to abandon it (1) where its loss cannot be avoided (called actual total loss), or (2) where the cost of repairing the damage exceeds its value (called constructive total loss). The insured party can still claim full settlement from the insurer (who becomes the owner of the abandoned property), after serving the notice of abandonment subject to the conditions of the insurance policy. Most non-marine insurance policies (such as homeowners insurance policy), however, specifically prohibit abandonment of the insured property under any circumstance.

Use 'abandonment' in a Sentence

Sara has fear of abandonment, her father left her in the mall for three hours when she was only five years of age.
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Unfortunately our team recommended an abandonment of the asset at this point because it became more of a liability for us.
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I felt that Charlie was still dealing with abandonment issues, since his mother and father left him when he was a young boy.
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