In some marriages, spouses will have certain assets that are valuable and will be considered luxury assets including items such as the following: collector’s items, vacation homes, fine art, recreational vehicles, club memberships, and more. When this occurs, it is important that these assets’ values are determined before they are divided between spouses. To learn more about how the value of luxury assets is determined in New Jersey divorce, continue reading. For assistance with your divorce matter, reach out to our experienced divorce attorney today to schedule your initial consultation.
How are assets valued?
When your assets are being valued in a divorce, the first tip to consider is not to assume that the other spouse will provide an accurate number for it. It is possible for them to have an ulterior motive to keep the asset and undervalue it. This is why it is so important to hire an assessor who will be able to value the asset based on the following factors:
- The assets condition
- What would likely be paid for the asset
It may also be necessary to hire an assess who specializes in valuing certain assets in some circumstances.
How are assets split?
There are a variety of different ways that luxury assets can be split. It does not always mean that one spouse will get one asset while the other does not. For example, when couples own a vacation home together, they can both keep ownership and split the time they have there. This process is used to ensure that neither spouse has to give up the asset. There are other cases where a spouse may need to give up certain assets so that they can keep others. When one spouse wants to keep a certain item, they will need to compensate the other spouse with assets of a similar value.
What if assets are sold?
It may be easier for luxury items to be sold so that the money can then be split between spouses. The following situation may prompt this process:
- The asset’s sentimental value may be tied to the marriage
- It may be too costly or impractical to keep certain assets as a single adult
- Spouses may need the money to pay for their divorce or certain marital debts
Contact our experienced Bergen County firm
At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.