Dividing Collections and High-Value Hobbies in a Divorce

One of the most important elements of the divorce process is the division of property and assets. Some couples stress and worry during this stage, while others breeze through with absolutely no problems. This is because some couples’ marital assets are easy to evaluate, determine their worth, and distribute fairly.

However, it is not unusual for certain assets to come up in the process and cause unique challenges. Some of the more difficult assets to value and divide are collectibles or equipment for high-value hobbies.

What is equitable distribution?

North Carolina § 50-20 explains that all marital property goes through a process called equitable distribution. Marital property is any property the married couple acquires throughout the marriage, meaning it belongs to them both. Once the couple’s marital property is identified, it will be divided between both spouses.

Many people hear the term “equitable distribution” and assume that it means the property and assets will be divided equally. However, it is critical to understand that equitable does not mean equal. Instead, the court will divide everything in a way they believe is fair based on the couple’s unique situation and circumstances.

Examples of collections and high-value hobbies in Charlotte divorces

After spending several years assisting clients with divorces, we have seen many different and very interesting high-value collections, also called collectibles, and hobbies come up in divorces. Here are some examples of high-value collections and hobbies that may need to be included in your own Charlotte divorce:

• Artwork
• Wine
• Coins
• Stamps
• Sports cards
• Sports jerseys and uniforms
• Autographed products
• Cars
• Books and comic books
• Vinyl records
• Fossils
• Antique furniture
• Decorative plates and dishes
• Figurines
• Jewelry

Weighing emotional vs. financial value

When collectibles and hobbies are on the table in a divorce, the court will need to weigh both the emotional and financial value of these assets. This is important because some assets and property that the couple may have acquired during the marriage may have more sentimental value than financial value, while others have both.

For example, a set of family quilts given to the couple from a great-grandmother may be considered a collectible heirloom that means a lot to the couple, but they may not have much financial value. On the other hand, if a great-grandmother gives the couple a set of dishes from China or a rare first-edition book, these items could have a high emotional and financial value.

In cases like these, it is important to determine whether the item was truly given to the couple or if it was given to the spouse related to the person who gave it. Inheritances are typically considered to be separate property. If the item was given to one spouse as a gift or inheritance, it is considered to belong solely to that spouse and cannot be divided as marital property. However, if you purchased any high-value collectibles or were given to you both as a gift, they will likely need to go through the equitable division process.

Sometimes, if one spouse knows how much emotional value an item has to the other spouse, they will decide to allow them to have it. However, if your spouse does not want to part ways with the item and you both cannot agree, the court may have to make that decision.

How to value niche assets

Before a niche asset, such as wine, art, sports memorabilia, or antiques, can go through the property and asset division stage, the court must determine its worth. This can be very difficult, especially if the value of the specific asset is constantly changing. The more that an item is sought after, the more likely it is that its value will increase in a short amount of time. When couples have niche assets like this, they may need to hire a professional appraiser to analyze the products and determine their worth.

It is important to know that the services of a professional appraiser can be expensive. However, if you want to make sure that the true value of your and your spouse’s collections are taken into consideration during the divorce process, it may be a good idea to pay for these services.

Ways to reach a fair division of high-value collectibles or hobbies

You and your spouse may be able to reach a fair division of your high-value collectibles or hobbies in a few ways. Most divorce lawyers recommend sorting out all collectibles or hobbies without involving the court. Instead, you can sit down with your lawyers, identify every collectible or hobby that means a lot to you both, and devise ways to divide them fairly. Below, we will go over a few ideas for reaching a fair division of high-value collections or hobbies.

• Purchase from the other: If you decide to purchase the collection from your spouse, you will give them money for the collection. Depending on your spouse’s willingness to accept money for something that may mean a lot to them, this option could work in your favor.
• Trade-off negotiations: This allows you to keep certain items in exchange for other important items. For example, if you want to keep a rare collection of comic books, you may have to give up another important collectible that your spouse wants, such as your expensive artwork collection. Your spouse must consider this a fair trade-off for it to be successful. You can also give up other non-collectible assets for your collectible assets if your spouse agrees. For example, you may be able to trade the family vehicle for the set of dishes and jewelry you and your ex-spouse purchased.
• Sell and divide proceeds: Another option to reach a fair division is to sell the collectibles and divide the money you make from them. This ensures you both receive a fair and accurate earnings cut from the items you have collected and purchased over the years.

At Epperson Law Group, we have helped many individuals successfully pursue and obtain divorces. If you are looking for compassionate and understanding Charlotte divorce attorneys who can support and guide you through the process, we are ready to assist you. Our team is aware of the many types of marital property and assets, and we do everything we can to ensure that yours is divided fairly. Please call our office or submit our contact form to schedule an appointment today. We are located in Charlotte, Wedding, Concord, and Boone for your convenience.