Dividing high-value assets, such as yachts, art collections, or rare antiques, can be a complicated part of the divorce process in Colorado. State laws require an equitable division of marital property, which means the court aims for a fair—not necessarily equal—split of all assets acquired during the marriage.
The division process for luxury items often requires more detailed assessments and specialized expertise.
Determining if luxury assets are marital or separate property
The first step in dividing luxury assets involves determining whether the items are considered marital or separate property. Marital property includes assets acquired during the marriage, while separate property consists of items owned before the marriage or obtained through inheritance or gifts.
In Colorado, only marital property is subject to division. For example, if you purchased a yacht after getting married, it is likely to be marital property. However, a painting inherited from a family member could be separate property.
Valuing high-value assets
Accurately valuing luxury items is critical during the division process. Courts often require appraisers or industry professionals to determine the current market value of assets like rare artwork, collectible cars, or designer jewelry.
The valuation considers factors such as the item’s condition, rarity, and historical significance. Both parties typically hire experts to ensure that the valuations reflect the true worth of the items in question.
Factors affecting the division of luxury assets
Colorado courts consider several factors when dividing luxury assets. These include the length of the marriage, each spouse’s financial contributions, and each party’s economic circumstances after the divorce. For instance, if one spouse primarily financed the acquisition of a yacht, the court may award that asset to them while granting other assets of equal value to the other spouse.
Options for resolving disputes
Couples can negotiate the division of luxury assets through mediation, which allows for flexible solutions. One spouse may choose to “buy out” the other’s share of a valuable item, or the assets can be sold and the proceeds divided. If you can’t reach an agreement, the court will decide how to allocate the assets based on equitable division principles.
Dividing luxury assets during divorce can be complex, but understanding the legal framework and seeking accurate valuations can help ensure a fair outcome.