The division of marital property between the spouses is an important part of most divorce proceedings. According to the South Carolina Bar Association, South Carolina is what is known as an “equitable division” state, which means that the judge in the South Carolina Family Court overseeing the divorce case will attempt to ensure a division of marital property that is equitable, but not necessarily equal – the court will try to distribute the marital property in a way that is fair to all sides. The South Carolina divorce attorneys with King Law Offices have extensive experience in helping clients ensure that the court has accurate and complete information from which to reach its decisions regarding the division of marital property, even when the process requires complex calculations and the services of independent experts. For questions about valuing collectibles and other concerns related to your divorce proceedings, reach out to a member of our team today by calling (888) 748-KING to schedule a consultation.
Recognizing the Value of Collectibles
People in all walks of life collect items of all types, for reasons as unique as the individuals who build these collections. Some collections are carefully curated and organized by theme, whereas others come together as the result of their owners’ drive to acquire as many versions as possible of the particular type of item they have chosen to collect. Similarly, some collections are elaborately displayed in their collectors’ homes, while in other cases the objects themselves are carefully secured, and rarely if ever shown. Many collections begin with the collector’s personal interest in the history or artistry of a specific type of item, and may thus have additional importance for the collection’s owner beyond the potential resale value of either the individual item or the collection taken as a whole.
Defining “Collectibles”
The diverse spread of items collected, and the wide range of motives for collecting them, can make it difficult in some instances to even define what a “collectible” is. For the purposes of valuing collectibles during divorce proceedings, however, there are a few factors that may be used in determining whether the item is a collectible and therefore potentially needs valuation independent of its decorative qualities or potential for practical use. The item is likely to be a collectible if:
- The item is a representative of a limited set of objects, especially if the individual items in that limited set are numbered and/or signed
- There exists a community of individuals who recognize the individual items in the limited set of objects (above) as related, usually because they are individually part of a single production series (e.g., limited edition action figures related to a specific media franchise) or because they were all made or signed by the same recognized individual (e.g., signed baseball cards)
- The value of any individual item in the set is enhanced by its place alongside other items from the set (the value of the collection exceeds the sum of the values of all its parts, to a degree that is proportionate to the “completeness” of the collection)
Many of these factors, such as the relative “completeness” of a collection, may need to be determined with the assistance of experts in the field. An experienced South Carolina divorce attorney from King Law Offices may be able to advise you concerning whether it is appropriate to consult an independent appraiser to assist in valuing collectibles as you approach divorce.
Personal Interest
The element of personal significance can make valuing collectibles appropriately a complex undertaking, as a curated collection built over many years often represents an extensive investment of not just money but time and attention and the development of substantial knowledge relating to not just the items in the collection but also the production history of these and similar objects. Collectibles therefore often have value to the collector well beyond the price the collection would be likely to command if offered for sale.
This facet of collecting can often make retention of a collection in its entirety both a major point of contention and a useful “bargaining chip” during divorce negotiations, particularly during the court-ordered divorce mediation process to which, as the South Carolina Judicial Branch explains, most divorces in the state will be subject. Besides the personal significance many collectors place on the practice of collecting, however, there are a few more readily quantifiable considerations that can introduce their own complicating variables to the valuation process.
Factors To Consider In Valuing Collectibles
In addition to the factors that help to determine whether the items an individual has collected should be considered, and valued, as collectibles, there are a number of factors that can affect the value of the individual items and of the collection as a whole. Some of these factors may need to be parsed with the assistance of an outside expert.
Dimensions of Value for Collectibles
Because collectibles are to some extent defined by the practice(s) of collecting applied to them, and this practice typically exists within the context of a community of individuals who take into consideration a number of interacting factors when determining how to value a specific collectible or collection, valuing collectibles often requires determining several different dimensions of value to come up with a composite appraisal of the total. Some factors that may be considered, depending on the type of collectible, include:
- Value of individual item, taken separately
- The sum of the value of individual items in the collection
- Value of total collection (greater than the sum of parts)
If you are already a collector, you are likely familiar with most of what is described in the above list. On the other hand, if it is your spouse who is the collector, you may be in a position to be taken advantage of without additional guidance. Consider speaking with a divorce lawyer who can advise you regarding your options for valuing collectibles that may constitute important assets.
Condition of Items
Generally speaking, most collectibles are more valuable the closer to their presumed “original” condition they are. There can be exceptions to this rule, such as when items derive a portion of their value from their provenance and signs of a particular type of damage may be taken as evidence of authenticity. The applicability of this type of value can vary widely by the type of object and reason for collecting. For instance, some collectibles may be considered especially valuable because of the identities of former owners, and in that case signs of damage or wear and tear consistent with their claimed ownership history may enhance their value.
More commonly, however, collectors place a premium on items considered to be “in mint condition” – a term itself derived from coin collecting – and items are depreciated in proportion to the gap between their present condition and what would be expected for each item in its just-finished state. The value of the total collection may sometimes be higher for a set of items all in similar condition than for a set of items that include both “mint” and badly damaged and badly damaged items, depending on the type of collectible and the valuation norms of the collector community.
Completeness of Collection
There can be several ways of assessing a collection’s degree of completeness, depending on the type of object under consideration. For mass-produced items defined by their shared theme and date range for production, such as the “collectible” cups or toys that often accompany new theatrical film releases (and that sometimes appreciate astronomically over time), a “complete collection” may consist simply of one example of each character cup or action figure originally issued. In other instances, however, the concept of completeness can be complicated by a variety of considerations such as disputes (among collectors) over which items “belong” in a set. Graphic novels, for instance, are in many cases highly prized collectible items – but connoisseurs may consider a set “complete” when it contains all graphic novels developed as part of a collaboration between a specific artist and writer, when it contains all issues related to a specific storyline, or when it contains all issues prepared under the oversight of a specific editorial team, among many other possible parameters.
Further complicating the question of completeness is an issue related to the organization of the items as originally produced or released. For many types of collectibles, a collection with a few items issued or numbered sequentially, or featuring the same character or theme (depending on the type of item collected), may be considered more valuable than a collection with more items but that features “gaps” in sequence or that is distributed over multiple themes. The complex and often context-dependent questions involved in determining a collection’s “completeness” and assessing how that completeness impacts the collection’s total value can make it advisable to seek an expert opinion before submitting (or accepting) an estimate of a collection’s value as part of the financial disclosures in your divorce proceedings.
Seek Experienced Advice from a South Carolina Family Law Attorney
Accurately valuing collectibles in preparation for divorce proceedings can be a more complicated undertaking than it may at first appear – but if either spouse has a substantial history as a collector, securing a clear and accurate estimate of the value of their collectibles will likely be necessary to ensure a fair and reasonable outcome in the division of marital property. A variety of factors may come into play, depending on the circumstances, and in some instances you may need to call on outside experts to conduct independent appraisals. Consider working with an experienced South Carolina divorce attorney who can advise you throughout the process. King Law Offices maintains locations statewide, so call (888) 748-KING to find an office and attorney near you.