Evaluating and Dividing Collectibles in a Divorce

Every divorcing couple must address the matter of property division, which can be extremely challenging in even the most straightforward circumstances. When collections or collectibles are involved, however, the matter is likely to be that much more complex. Turn to an experienced Illinois property division attorney for the skilled legal guidance you need. 

Whether the Asset Is Separate or Marital

The first matter of concern when it comes to dividing assets in a divorce is whether or not the property in question is marital or separate. A collection that one spouse owned prior to marriage and brought with them into the marriage is considered separate property, but any increase in the size of the collection will likely be considered marital. Further, if one spouse began the collection during the marriage and it’s that spouse’s passion project, it doesn’t alter the fact that the collection is a marital asset that must be addressed in the division of marital property. 

The Value of the Collection

The fact is that many collections grow in value over time, and they can be difficult to assign a value to. Typically, a valuation professional with expertise in the specific kind of collection you have will need to be hired. It’s important to note, however, that the person who amassed the collection – even if it is marital property – may have a strong emotional connection that makes reaching an agreement regarding the value that much more challenging.

Family Heirlooms

If the collectible in question is a family heirloom, there can be an additional layer of sentimentality involved. For example, if your family gave you a family heirloom as a wedding gift, it’s a marital asset, but it likely has far more sentimental value for you than it does for your divorcing spouse, which can make striking a balance more difficult. 

Gifts

Gifts made to one spouse or the other are separate property that needn’t be addressed in the division of marital property, which can further complicate things. For example, if your spouse has a valuable watch collection and they purchased the bulk of the pieces during your marriage, that part of the collection is a marital asset. If, however, you gifted them watches throughout your marriage, those pieces are the separate property of your spouse. 

Some Assets Can’t Be Divided

Collections and collectibles are unique in that they often can’t be physically divided. For example, you can’t divide a painting, a piece of jewelry, or a sports card without destroying its value completely. Additionally, when you break up a collection, it can lose considerable overall value. As such, one spouse may be awarded the collection while the other receives their share of its value via one of the following options:

• The spouse who walks away from the collection receives another asset or a larger portion of another asset, which works well for those with estates of considerable size.
• The spouse who keeps the collection can buy the other spouse out upfront by securing a loan to do so.
• The spouse who keeps the collection can buy out the other spouse over time.

Seek the Skilled Legal Guidance of an Illinois Property Division Attorney

The savvy Chicago property division attorneys at Arami Law, Inc., have a wealth of experience helping clients like you address complicated issues like collections and collectibles. Learn more by reaching out and contacting us today.