Understanding the difference between high-asset and standard divorces can be confusing. The main way these two processes differ is due...
Art, antiques, and other collectibles are far more than property. They have an aesthetic value with an emotional resonance for the collector that cannot be quantified.
Priceless personal property included in the marital estate is subject to division when you dissolve your marriage. Reaching an appropriate valuation and division could be a significant hurdle that requires the assistance of a skilled divorce lawyer.
Couples divorcing in Ontario must arrive at a fair division of their family property. Anything you or your spouse acquired during the marriage is family property, including art or collectibles. The appreciation of one spouse’s property during the marriage is part of the marital estate.
The law presumes that couples should share equally in the wealth generated during their marriage. It does not require an equal division of every item of property. Instead, it requires that a spouse who retains property provide cash or something of equal value to the other spouse in exchange.
A critical element in valuing property is deciding on a valuation date, which is the date your marriage ended or you separated. This date is not always easy to determine, and because personal property can fluctuate in value, the date you choose could make a significant difference. We recommend consulting with our legal representatives before agreeing to a valuation date.
An appraiser could provide a value for personal property, such as art or antiques, determining its value as of the valuation date you set. The large auction houses and museums devoted to the specific category of property could suggest reputable appraisers. If the property or collection is unique or rare, obtaining several appraisals is wise.
You and your spouse may dispute the quality or accuracy of an appraisal. When it is possible, you benefit from resolving these issues before they escalate. To reach an agreed value, you and your spouse might average the appraisals, select the highest or lowest value or decide that one appraisal is sufficient and commit to accept that value.
If the question of property division is presented in court, the judge may divide your property on a mathematical basis, using the appraised value of the assets. This method is ill-suited to dividing property with intrinsic aesthetic and sentimental value. It does not consider the property’s potential to appreciate nor does it honour your emotional and intellectual investment in collecting and curating the property.
Couples who hold substantial wealth in personal property, such as art and collectibles, benefit from negotiating the division of these assets. If your spouse is interested in retaining a specific form of property, it could be financially advantageous to you. Since collections are often more valuable than the value of their component parts, keeping collections with a single spouse usually makes economic sense and preserves the collection’s cultural or aesthetic integrity.
These decisions are more difficult when you and your spouse share an interest in a specific collectible. Our divorce lawyers could assess your and your spouse’s emotional attachment to the property and what aspects you both value most about it. Our legal team could then broker an agreement that produces a fair financial result and ideally allows you and your spouse to continue to pursue your passions.
When you have amassed significant wealth in the form of personal property, such as art or collectibles, it has value beyond the numbers. Dividing it fairly in a divorce is challenging.
The divorce lawyers at our firm have experience helping couples divide their priceless assets. Contact us at any time for help valuing and dividing art and collectibles.
Paul Riley Law Office
