Collecting can bring a lot of satisfaction and joy. Some collections are also worth a considerable amount of money. Whether you collect sculptures, vintage cars or 18th-century books, if you are divorcing, you need to think about how you will handle your collection.
Here are three things to consider:
1. How do you put a price on it?
As far as courts are concerned, collections are just assets and, unless they are considered separate property or protected by a pre or post-nuptial agreement, they need to be factored into the overall division of property. To do this, you need to put a price on them.
Valuing items can be complex, so a professional valuation is often wise. However, not even the professionals always get it right, with some items selling at auction for far more than anyone anticipates.
2. Will splitting a collection reduce the value?
Some collections are just made up of individual pieces. If you were fortunate enough to own a painting by Jackon Pollock, another by Andy Warhol and another by Jean-Michel Basquiat, keeping the three together is not essential to get the best price. If, instead, you own a triptych by one of those artists, keeping the three parts together is integral to the value.
3. Can you protect its value going forward?
After your divorce, you intend to move to leave the U.S. and move to a beach-side house on a tropical island. If you own vintage vehicles, the salt in the air could cause them to rust. If you own paintings, the humidity could damage them. In both cases, their financial value could drop.
There is a lot to consider concerning your collections in a divorce, and legal guidance can be indispensable.