Spouses preparing for a high-asset divorce often begin the process with an awareness of their most valuable assets. They may focus on claiming certain property as separate, finding a way to establish its value and pushing for a fair solution based on the totality of the marital estate.
Real property holdings, businesses, retirement savings and other high-value resources often dominate the process of preparing for divorce. The larger the overall marital estate, the more likely spouses may be to overlook personal property as they prepare for the divorce. They may even begin negotiations with the concession that each spouse simply retains their personal property. However, that approach may be a major mistake for those with complex, high-value marital estates.
Personal property can be worth more than people expect
Individuals preparing for divorce are sometimes dismissive about the overall value of personal property. Personal property consists of assets owned directly by individuals, such as furniture, clothing, household items and equipment used for hobbies.
Spouses may be dismissive about personal property in part because they have no interest in one another’s tools, jewelry or designer wardrobes. While one spouse may have accumulated their collection a vintage Art Deco furniture during the marriage, the other spouse may have no desire to style their next home with those vintage pieces.
While retaining the personal property of a spouse may not be the goal in divorce, securing a fair property division outcome usually is. Spouses need to identify the full value of all assets acquired during the marriage. Personal property accumulated using marital income is part of the marital estate and can influence the distribution of other assets.
Resources including collections, jewelry, wristwatches, designer wardrobes and fine art can represent tens of thousands of dollars of marital income. Even in scenarios where such assets are actually separate property and are not part of the marital estate, the value of separate assets can influence a judge’s determination about what is fair when splitting up marital property.
Taking the time to identify and value personal property can help ensure a fair outcome during divorce proceedings. Personal property can be incredibly valuable. Even those with no interest in retaining certain assets may need to know the extent of their spouse’s property and its approximate value.