For some couples, dividing assets in a divorce is more complicated than splitting bank accounts and some real estate. Luxury items, such as fine art, wine collections and sports memorabilia, can carry significant monetary and emotional value.
Dividing these items requires transparency, careful valuation and an understanding of how courts treat marital property versus separate property.
What counts as marital property?
New Hampshire is an equitable distribution state, which means that, in a divorce, marital assets are divided fairly. This could be a 50-50 split, but a judge may look at factors such as age, health, income and separate property and determine that a different split is more fair.
The first step is determining whether a particular luxury item was acquired during the marriage (marital property) or if one spouse owned it before the marriage or received it as an inheritance or gift (separate property). Sometimes the lines are blurred. For example, jewelry received during the marriage may be considered a marital gift, or one spouse may have used marital income to restore a classic car. These are items that usually appreciate in value, making it essential to determine how and when they were acquired.
There can be no fair distribution without knowing the item’s worth. This usually requires the input of an expert, including:
- Fine art appraisers
- Gemologists
- Collectors with niche expertise
It’s crucial to remember that some luxury items can fluctuate in value based on market trends.
Dividing luxury items also requires a paper trail, such as purchase receipts, insurance policies or auction catalog details. These records can help confirm ownership, establish value and determine whether an item is marital or separate property.
There are several ways to divide high-end luxury items:
- Sell the items and split the proceeds.
- One spouse keeps the items and offsets the value by giving the other spouse a larger share of a different asset.
- Continue co-ownership of the items.
If there is no resolution, the court will likely intervene. Because of a luxury item’s value and sentimental importance, it’s crucial to have experienced legal guidance to protect your interests and help ensure a fair resolution.
