According to the Public Broadcasting Service (PBS), fine art has the potential to outpace bonds in terms of investment returns. The American Gem Society also notes that most high-quality jewelry and gemstones hold their value over time, especially with rising gold prices. There are countless other examples of expensive personal items that spouses may own when approaching high-net-worth divorces, and something as obscure as a Pokémon card collection can be worth far more than most people realize. These high-value personal items can raise all kinds of challenges, and it is important to tackle them with confidence and efficiency. A lawyer who has experience with high-net-worth divorces may be able to help spouses overcome these challenges. Dial (888) 748-KING for a continued conversation with King Law Offices. Spouses and Tennessee residents can visit our offices in Washington County.
Why Does Jewelry and Fine Art Matter During Divorce?
In a typical divorce, jewelry and fine art might be relatively irrelevant. Spouses might focus more on the family home, retirement accounts, and other high-value marital property. However, these assets could play a much more important role in high-net-worth divorces. Many high-income spouses are shrewd investors, exploring unique strategies in addition to the typical stock or bond portfolio. Many of these strategies involve the acquisition of fine art, collectibles, and jewelry. Sometimes, these investments occur by accident – with high-net-worth spouses treating themselves to luxurious purchases that appreciate in value. In other situations, these investment strategies are more intentional.
Spouses who are unfamiliar the hobbies and interests of their exes should tread carefully, as a seemingly worthless collection could be worth much more than they realize. A vintage automobile may be worth millions to the right collector, even if it seems like a piece of junk at first glance. A collection of hockey cards might seem worthless or even juvenile, but someone may be willing to pay a fortune for it. A sculpture might appear to be nothing more than a twisted heap of scrap metal – but it could have been created by one of the most famous artists in the world. These are all factors spouses should keep in mind when approaching personal items in the estate.
High-Value Items Have a Habit of Going Missing During Divorce
Once spouses become aware of items that may be valuable during high-net-worth divorces, they should create detailed inventories. Consider taking a photograph of the item in question and noting its estimated value. Spouses can do this with fine art pieces, cars, and jewelry in their homes. An inventory is an important safeguard, as these high-value items have a habit of going missing during divorce. If there is no record of the items ever existing, a spouse might hide a valuable piece of art or jewelry and keep 100% of its value after the divorce. If either spouse acquired a high-value item during marriage, it is subject to the equitable distribution process – and both should receive about 50% of its value.
Spouses who notice items missing from their homes should immediately contact an experienced divorce lawyer. Attorneys at firms like King Law Offices may be able to bring this to the attention of the family courts, and the guilty spouse could face various consequences for attempting to conceal assets. A detailed inventory could become valuable evidence for spouses making these allegations. Lawyers can guide spouses through these steps, allowing them to collect important evidence with confidence.
The Importance of Appraisals During High-Net-Worth Divorces
Appraisals are often extremely important during high-net-worth divorces. Sometimes, the true value of certain items becomes a subject of dispute between spouses. For example, one spouse might argue that a painting is only worth a few hundred dollars – while the other may be convinced that it is worth millions. In this situation, a professional art appraiser may help determine the market value of the art piece in question. Often, these individuals have sufficient experience to detect fraudulent copies.
The same logic applies to antiques, vintage automobiles, card collections, stamp collections, coin collections, and so on. Spouses must also consider the “liquidity” of these assets – or the time and effort it takes to sell them at the highest possible price. Even though someone on the planet might be willing to pay $7 million for a collection of rare vinyl records, the spouses might not have enough time to track this individual down. As a result, it might be more realistic to accept a lower price from someone who is willing to pay within a shorter timeframe.
Unique Challenges Surrounding Jewelry
Jewelry could be easier to appraise in some situations, as precious metals and jewels are associated with clear market prices. A piece of solid gold jewelry should be relatively easy to sell at a fair price, for example. On the other hand, pieces of antique jewelry could be more challenging – and spouses may need to get help from appraisers.
Spouses should also set aside any jewelry they received as gifts during the marriage. Third-party gifts are “separate property” during divorce and are not subject to property division. Note that the spouse who received the engagement ring typically gets to keep this piece of jewelry, since it was technically a gift received before marriage.
Approach High-Net-Worth Divorces With King Law Offices
Much is at stake during high-net-worth divorces. A few simple mistakes or oversights can lead to hundreds of thousands – or even millions – in losses. Spouses must consider all of their various assets when navigating this process – including high-value personal items. Collectibles, fine art, jewelry, and many other assets can all make a real difference during post-divorce life. Spouses often face considerable financial challenges after ending their marriages, and they only get one chance to secure a fair settlement during the property division process. An experienced property division lawyer in Tennessee could provide meaningful assistance. Dial (888) 748-KING to learn more about the potential next steps. Residents in Tennessee can visit our Johnson City location.