Whether you are in a massive and high profile messy divorce, are having an amicable divorce and have to deal with some luxury assets, or are having any situation in between, it can be hard to pin down what happens to your luxury assets after a divorce.
Divorces are often complicated enough without dealing with uncertainty, so this article is going to share a bit about what to expect whenever you need to go through a luxury divorce.
It Is All About Value
At the end of the day, you need to know how valuable all of your luxury goods are. This is the dollar amount, the monetary value of all of your possessions, because it will come in handy whenever the assets are divided up.
Additionally, know that for the most part, your marital property is going to be what is divided up. This means that items and assets that you or your spouse bought or brought to the marriage before the wedding was done are often safe.
However, if you purchase or create new assets (such as a company) during the marriage, then those items will likely be divided up over the course of the divorce. These marital assets can also include gifts as well as things bought with a joint account during the marriage.
Understand The Value Of Your Items
It is very important that whenever you go into a divorce, that you know the value of your items and document them accordingly. Taking inventory of what items were bought with the joint credit card, what items are very valuable, and other factors can help you out. Especially if you are in a state where the law is an even 50 50 split. If you hand an item over without fully understanding its value, you might find that you are losing out on some funds.
Making sure to understand the value of the items that you are dividing is one of the best ways to ensure everyone gets their fair share of items.
Look At The Items That Go Up In Value
While some of the big ticket items you might think about include the home, any stock plans, retirement funds, and vehicles, you should also make sure to research the smaller items in your home that go up in value. For example, things like designer handbags, watches, clothes, and other luxury goods might be worth more than they were when they were bought.
Sadly, many people can lowball the value of these items out of ignorance whenever they are discussing a divorce, but if you are in the know you can bring these questions to the table and change the way the negotiation is going.
Understand the Role Your Attorney Plays In Your Divorce by State
When it comes to filing for divorce in various states, you need to make sure that you know what is going to happen by state. Filing for divorce in California is going to have different procedures than filing for divorce in Texas, and there will be different rules and procedures depending on the state.
For example, Texas is a community property state that states everything that was acquired during the marriage is going to be divided equally by the Court. This includes money, real estate, property, and of course luxury items. Additionally, debts and assets are shared equally too.
There are some occasions where one spouse or the other can make a case that a certain item shouldn’t be considered equal property, but those scenarios are extremely specific.
An Attorney Can Help With This
One of the best things that you can do if you find yourself dealing with a lot of luxury goods is to ensure that you are working with an attorney who can help you out. Going through all your items, luxury or not to make sure that you have the correct values can be time consuming and mistakes can be extremely costly, but an attorney can help you get all your prices in order.
It is also important to get an attorney that has some experience dealing with high net worth divorces as well, because they will be able to help you through every phase of the process. Especially whenever you are dealing with the gray areas between personal and separate property.
Make Sure To Be Rational With The Asset Distribution In Your Divorce
It can be extremely easy to let personal feelings get in the way and cause problems for you during a divorce, and it can also be easy to fight for the ‘sentimental value’ of an item even if it isn’t worth much.
In order to make sure that your property is evenly divided, pick your battles and choose what you will fight for and what you will let go of based on logic and not emotion.
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