One of the most difficult parts of a divorce is dividing a couple’s assets between the two of them. This is especially so when they are of significant net worth and have many valuable properties. Sometimes, these may be luxury items instead of necessities, such as 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?
When dividing or selling luxury items in a divorce, it is important to know their worth first. This can be done with the assistance of an assessor to determine the value. This is done based on the condition of the assets and what another person would be likely to pay for them. There are some cases in which an asset may require an assessor who specializes in evaluating those specific items. It is important to not assume a spouse will provide an accurate value of an asset, as they may understate the value so they can keep it. That is why assessors should help.
How are Assets Split?
There are different ways the division of luxury assets can take place. For example, when couples own a vacation home together, they can split ownership of the home and their time spent there. In other cases, there are assets that spouses may need to give up in order to keep something they want. If a spouse keeps a high value item, they will have to compensate the other with assets of similar value. During this time, keep the idea of equitable distribution in mind, as it divides assets based on what is fair, not what is equal.
What if Assets are Sold?
It is sometimes easier to divide a luxury item between spouses by selling it and splitting the money. This may be better 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, it is important to keep in mind that there is no guarantee you will receive the money that you expect for the assets you are given.
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Ross and Calandrillo, LLC is a full-service divorce, family, and real estate law firm located in Mountainside, New Jersey. For strong legal representation in all of your divorce or family law matters, contact Ross and Calandrillo, LLC to schedule a consultation.