How is the Value of Luxury Assets Determined in a New Jersey Divorce?
The process of divorce divides a couple’s assets amongst the two of them. In some marriages, spouses have certain assets that are valuable and sometimes considered luxury assets. This can include collector’s items, vacation homes, fine art, recreational vehicles, club memberships, and more. When dealing with these assets in a divorce, it is important that their values are determined before they are split up. Continue reading below to learn more and contact an experienced New Jersey divorce attorney for assistance.
How are Assets Valued?
When determining the value of an asset in a divorce, it is important to not assume the other spouse will provide an accurate number for it. This is because they may have an ulterior motive to keep the asset and undervalue it. It is because of this that it is best to hire an assessor who can value the asset based on two factors: its condition and what would likely be paid for it. An assessor who specializes in valuing a certain asset may be needed in some situations.
How are Assets Split?
Luxury assets can be split in a variety of ways. In some cases, it does not always mean one spouse gets one asset and the other does not. For example, couples that own vacation homes together can both keep ownership and split the time they have there. This ensures neither spouse has to give it up. However, there are other cases in which a spouse may need to give up certain assets so they can keep others. If one spouse wants to keep a certain high value item, they have to compensate the other spouse with assets that are of a similar value. It is important to keep equitable distribution in mind during this time, as it is used to settle a fair division.
What if Assets are Sold?
In some cases it can be easier for luxury items to be sold so the money can be split 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
If you need an experienced legal team to guide you through your divorce, contact Townsend, Tomaio & Newmark L.L.C today.