During the process of a divorce, couples are required to divide their assets between each other. When couples are of a significant net worth, they tend to have a great deal of valuable properties. Some of them are 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 and contact an experienced New Jersey divorce attorney for assistance.
How are Assets Valued?
It is important to know what luxury assets are worth before they are divided or sole due to divorce. This can be done by retaining the services of an assessor who can determine this value based on the condition of the assets as well as what someone would likely pay for them. Sometimes, certain collector’s items may need an assessor who specializes in evaluations of that item. During this time, it is important to not assume a spouse will give an accurate value of an asset they own. This is because they may have an incentive to understate the value so they can keep it. That is why assessors should be enlisted to help.
How are Assets Split?
The division of assets is generally always a complicated process. This is especially so when luxury items are involved. There are different ways the division can take place. For example, couples who own a vacation home together can split ownership and time at the home. There are other assets that spouses may be required to give up in order to keep others. When a spouse keeps one high value item, they will have to compensate for either with assets of similar value. It is important to not forget the process of equitable distribution during this time, as the court will use it to split assets based fairly, not based on what is equal.
What if Assets are Sold?
Sometimes, it is easier to divide a luxury item by selling it and dividing the 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
During this time, keep in mind there is no guarantee you will receive the money that you expect for the assets you are given.
Contact our Firm
If you require strong legal representation for matters of divorce and family law in New Jersey, contact The Law Offices of Paone, Zaleski & Murphy to schedule a consultation with one of our experienced attorneys today.