Once again, a recent celebrity divorce filing shines the spotlight on what happens when two wealthy people decide to go their separate ways. This also makes you wonder what will happen to the expensive and sometimes frivolous assets and collectibles accumulated while married.
In February, Kim Kardashian – the woman who is famous for being famous – filed for divorce from her husband the hip-hop superstar Kanye West. Recently named as a billionaire by Forbes, Kardashian joins her estranged husband on that business magazine’s exclusive list as West’s empire is reportedly worth $1.8 billion. So, what will happen to West’s collection of flashy, expensive cars and his 500 pairs of sneakers?
A valuable investment
In high-asset divorce cases, many of these couples accumulate valuable collections that the average person can only fantasize about. That list may include fine art, Persian rugs, wine, jewelry, luxury cars, yachts, sports memorabilia, rare books and comic books.
Any asset purchased by couples while married is marital property and subject to equitable distribution between them. However, the assets that they brought into the marriage and purchased before the union are non-marital assets.
Collectibles really are an investment. Although they are not real estate or securities, collectibles are similar to them because they represent financial investments. And, sometimes, when couples cannot agree as to who gets possession of such valuable collections, they really have no other choice than to sell them, perhaps via auction.
Create an inventory
Here are some key steps to take if you have valuable collectibles:
- Create a complete inventory. This may take weeks to accomplish, but get it done. By having a complete record of your collectibles, you are in a better position during negotiations and possible trial.
- Make sure you know the value of this collection. Their value may have increased or decreased during the time of your marriage. Also, please consider working with a valuations specialist who can help determine their worth.
Like any affluent couple choosing to divorce, Kim and Kanye have many matters to resolve. After all is said and done, they will each move forward to their happily ever after.