In divorces involving spouses with considerable wealth and complex assets, the process goes far beyond splitting bank accounts. In Massachusetts, marital property is divided “equitably,” but not necessarily equally.
Property division is a complex task when dealing with unique, non-cash assets. How are your fine art or rare collections handled under equitable distribution? The division of high-value tangible assets like these requires specific, careful consideration.
Defining and valuing unique assets
High net worth couples often own items that are difficult to value. These assets are illiquid and do not have an easy-to-read balance statement. These valuable, unique assets often include:
- Fine art collections or rare sculptures
- Classic automobiles and vintage motorcycles
- Antique furniture or historic items
- Designer jewelry and high-value watches
- Rare coins or stamp collections
Unlike a standard investment account, hiring a qualified, certified appraiser to determine the fair market value of these items is essential. The appraiser establishes the asset’s fair market value as of a date specified by the court, which has broad discretion.
The court selects an equitable valuation date, which may be the date of division, the date of the divorce complaint or the date both parties stopped jointly contributing to the asset. You need an accurate value to allow for a fair final division.
Dividing ‘unsplittable’ assets
Unique marital property presents a challenge because you cannot physically cut a single rare painting in half. The value of the collection or item is the key factor in the division strategy.
The court is empowered under Massachusetts General Laws Chapter 208, Section 34, to make an “assignment of estate” to achieve an equitable division of marital property. A practical way they accomplish this often involves either the physical allocation of specific items from a collection or value equalization, in which one spouse retains the asset and the other receives an offset in cash or other marital property.
Using physical allocation or value equalization helps the court account for all valuable assets. It provides a mechanism to achieve an equitable division of the total marital estate, even when the assets are unique.
Protect your financial interests
Successfully dividing high-value, nonliquid assets demands a deep understanding of both specialized appraisal methods and Massachusetts family law. The complexity and potential for valuation-related arguments underscore the value of skilled legal representation. Protecting your financial future and ensuring an equitable outcome are essential.