Divorces can be complicated and can cause confusion. There is light at the end of the tunnel. It’s simply a matter of how you approach the division of assets during the divorce. For couples with a high net worth, art can be an investment that is heavily sought after by either party. There are a few things to keep in mind when dividing art as part of the divorce proceedings.
Experts have noted that dividing art during a divorce can be as big of a dispute as to custody arrangements. That is because art can have a stronger emotional connection to the owner. Serious art collectors may never marry because they are so concerned about what may happen to their prized collection. There are a few ways for divorcing couples to avoid taxes and have a peaceful negotiation about their art collection.
The first step is to make an inventory. The inventory should consist of each piece of art bought and sold before and during the marriage. The list should include prices related to these activities. Depending on the jurisdiction, art bought before the divorce may or may not be considered marital property. It is never recommended that art be “hidden” as it could lead to many legal implications. The last step is to hire an appraiser to correctly give value to the art still in inventory.
Art is a more personal type of property, much more so than cash for some people. If both divorcing parties are equally in love with the piece of art, it could mean war. It is best for the couple to remain calm and reasonable when dividing assets. The current value of art, as decided by an appraiser, could help to divvy the art fairly.
Source: online.wsj.com, “Tips for dividing art in a divorce or death,” Daniel Grant, September 21, 2014