When a couple goes through a divorce, they are required to split their assets amongst each other. This involves every piece of marital property of value that they have. In a high-asset divorce, spouses may have a variety of valuable properties. Some of these can be considered luxury items rather than necessities. This can include collector’s items, fine art, vacation homes, recreational vehicles, club memberships, and more. Continue reading below to learn more about how this is done and contact an experienced New Jersey divorce attorney for assistance.
How are Assets Valued?
When spouses either divide or sell their luxury items, it is important to first know what they are worth. This can be done by hiring an assessor who will value the luxury items based on the condition they are in as well as what someone would be likely to pay for them. In some cases, there are certain collector’s items that may require an assessor that specializes in evaluating that specific type of item. It is crucial to not assume that a spouse will provide an accurate value of an asset, as they may have an incentive to understate it so they can keep the item.
How are Assets Split?
The division of assets can be complicated in any divorce, let alone one where there are luxury items to divide. There are a variety of ways that this division can take place. In some cases, spouses can find creative ways to split their assets. For example, if they have a vacation home, they can split the ownership and time they have at the home. However, there are other instances in which spouses will be required to give up some properties to keep others. The spouse that keeps ownership of one high value item will need to compensate their spouse with other assets of similar value. It is important to also consider the concept of equitable distribution during this time, as the court will use this method to split assets based on what is fair and just, not an equal division.
What if Assets are Sold?
There are some cases in which it is easier to divide a luxury item by selling it and turning it into money. This may be for a few reasons:
- It may be too costly or impractical to keep certain assets as a single adult
- The asset’s sentimental value may be tied to the marriage
- Spouses may need the money to pay for their divorce or certain marital debts
When selling assets, it is important to keep in mind that there is no guarantee you will receive the money that you expect for the asset.
Contact our Firm
If you require experienced legal representation for a matter of Family Law, Supplemental Security Income, Medical Malpractice, Social Security Disability, or Legal Malpractice, Siragusa Law Firm is here to help. Contact our firm today to schedule a consultation so we can discuss your case.
