When spouses go through a divorce, they are required to divide their assets amongst the two of them. Depending on the divorce, spouses may have a variety of valuable properties that are sometimes seen as luxury assets. This can include collector’s items, fine art, vacation homes, recreational vehicles, club memberships, and more. When dealing with these situations, it is important to determine the correct value of these assets before they are divided. Continue reading below to learn more and retain the services of an experienced New York divorce attorney for assistance.
How are Assets Valued?
In order to know the worth of an asset before dividing or selling it in a divorce case, an assessor can be hired to determine its value. The value of an asset is based on two things: the condition of the asset and what would likely be paid for it. Sometimes, an assessor who specializes in valuing a certain asset may be needed. It is important to not assume that a spouse will give an accurate value of an asset they own. This is because they may choose to understate the value so they can keep it. That is why it is best to hire an assessor for the case.
How are Assets Split?
Luxury assets can be split in a variety of ways. Sometimes, spouses can be creative with how they choose to do so. For example, if the couple owns a vacation home together, they can both keep ownership and divide the time they spend there so neither party has to give it up. However, in other cases, a spouse may need to forfeit certain assets so they can keep others. If one spouse wants to keep a high value item, they will have to compensate the other with assets that equate to a similar value. During this time, keep the concept of equitable distribution in mind, as it is used to determine a fair division.
What if Assets are Sold?
In some cases, it is easier to divide a luxury item by selling it and splitting the money between spouses. This may be beneficial in the following situations:
- 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
Contact our Firm
Matters of divorce and family law should be navigated with the guidance of an experienced attorney. If you need strong legal representation regarding matters of divorce, family law, and estate law, contact the Law Offices of Susan A. Kassel, P.C. to schedule a consultation today.