Most people going through a divorce think about the obvious stuff first. The house. Retirement accounts. Maybe the cars. But what about that sculpture you bought in Paris? Your vintage watch collection? Those signed first editions that’ve been accumulating value for years? Luxury assets don’t fit into neat categories. They’re hard to value, often loaded with emotion, and you can’t exactly split a painting down the middle. At The Spagnola Law Firm, we’ve worked with clients who face exactly these situations.
How North Carolina Law Treats Collectibles And Art
North Carolina follows equitable distribution. That means marital property gets divided fairly, not necessarily equally. Luxury items you acquired during the marriage? They’re typically marital property. Doesn’t matter whose name is on the receipt. If marital funds paid for it while you were married, it’s on the table for division. Timing matters. You owned a rare coin collection before the wedding and kept it separate? That stays yours. But if you purchased art during the marriage, your spouse has a potential claim. Things get messier when separate property grows in value. Let’s say you owned vintage guitars before you met your spouse. During the marriage, you restored them, added to the collection, and their value tripled. Your spouse might have a legitimate claim to that increased value, particularly if marital funds paid for those restorations.
The Valuation Challenge
A house has comparable sales. A 401(k) has a statement balance. But how do you value contemporary art? Rare wines? Antique furniture? Courts need accurate valuations, and luxury assets require specialized knowledge. The process typically involves:
- Hiring qualified appraisers with expertise in the specific type of asset
- Documenting provenance and authenticity for art, antiques, and collectibles
- Obtaining insurance appraisals or recent auction results for comparable items
- Considering current market conditions and liquidity
A Greensboro High Net Worth Divorce Lawyer knows that retail replacement value isn’t what you’d actually get if you sold something tomorrow. That painting you bought for $50,000? After auction house commissions and fees, you might only net $30,000. Courts generally use fair market value.
Common Disputes Over Luxury Items
Wine collections can be worth hundreds of thousands of dollars. But bottles depreciate if storage conditions weren’t perfect, and proving provenance matters. Vintage automobiles need expert valuation. A fully restored 1967 Corvette in climate-controlled storage? That’s worth serious money. One sitting in a barn needing extensive work? Completely different story. Sometimes spouses hide assets. They’ll undervalue collections, forget about pieces stored elsewhere, or claim everything belonged to them before marriage. A Greensboro High Net Worth Divorce Lawyer can request documentation, subpoena records from dealers and auction houses, and bring in forensic accountants when necessary.
Division Options Beyond Selling Everything
Sometimes one spouse keeps the collection and offsets its value by giving up other marital property. Maybe you keep the art while your spouse gets a larger share of the investment accounts. Other times, specific pieces get allocated based on who wants them or who has a stronger sentimental attachment. Selling and splitting the proceeds works when neither of you wants the items or when they’re too valuable to offset with other assets.
Protecting Your Interests During Property Division
Documentation matters. Gather purchase receipts, certificates of authenticity, prior appraisals, and insurance records. Photographs showing the condition help too. Don’t move or sell luxury assets without court approval or your spouse’s written consent once you’ve separated. Courts take a dim view of that behavior, and it’ll damage your credibility.
Dividing luxury assets isn’t like splitting a bank account. Whether you’re dealing with fine art, precious metals, designer handbags, or rare memorabilia, experience matters. If you’re facing property division involving collectibles or luxury items, we can help you understand your options and work toward a resolution that protects what you’ve built. Reach out to our team today to discuss your specific situation.
