Divorce is a challenging process, and it becomes even more complicated when valuable collectibles are involved. In New Jersey, the division of assets, including collectibles, follows equitable distribution laws. This system aims to divide all marital property fairly, not necessarily equally.
If you own valuable items such as rare coins, vintage cars, or fine art, you will need an understanding of how they will be evaluated and divided. This article acts as a guide through what happens to your valuable collectibles in a New Jersey divorce, offering practical advice to help you protect your cherished assets throughout the process.
Understanding Marital vs. Separate Property
Marital property includes assets and income acquired during the marriage, regardless of whose name is on the title. Both spouses own marital property equally, so they must decide how to fairly divide these assets in a divorce.
Separate property belongs to only one spouse. In most cases, you should be able to keep it without trouble.
Separate property includes:
- Inheritances
- Gifts received by only one spouse
- Assets owned by one spouse before the marriage
Equitable Distribution in New Jersey
New Jersey follows the principle of equitable distribution in divorce cases. The court aims to divide marital assets fairly, though not necessarily equally, based on various factors.
When making property decisions, the court evaluates factors such as:
- The duration of the marriage
- The needs of any children involved
- The standard of living during the marriage
- Each spouse's income and earning capacity
- Contributions to the marital property, both financial and non-financial
By examining these factors, the court seeks to achieve a fair distribution that reflects the individual contributions and needs of both parties.
Potential Problems with Collections in a Divorce
Chances are, any avid collector will add new pieces to their collection during the marriage. These additions can complicate the classification of assets. Technically, any items acquired during the marriage are considered marital property under New Jersey's equitable distribution laws, including additions to your collection.
You will likely want to include new acquisitions as part of your overall collection without creating disputes over individual items. Doing so will require meticulous record-keeping and clear agreements. Document the acquisition details, including the date, source of funds used for the purchase, and any intentions explicitly stated at the time of acquisition.
Work with your attorney to obtain written statements from your spouse acknowledging that acquisitions are part of a pre-existing collection. Doing so may help you protect the integrity of your collectible portfolio. By treating new acquisitions as an extension of an already established collection, you may strengthen your argument that they should be distributed along with the original assets.
Claiming Entitlement to Your Collectibles in Divorce Court
You may be forced to claim entitlement to the entire collection under equitable division laws. Doing so requires a well-prepared and compelling case. Begin by highlighting the intrinsic value and significance of the collection to you.
Document your contributions to the acquisition, maintenance, and enhancement of the collection. These records include evidence such as receipts for purchases made with your funds, detailed records of time invested in preserving the collection, and any financial sacrifices or investments you made to grow its value.
In your argument, emphasize how the collection aligns with these considerations. For instance, you can outline the fact that you were the primary caretaker of the collection, managing its upkeep and ensuring its preservation. Further, underscore any sentimental value and long-term aspirations associated with the collection. These claims are not easily quantified, but they can hold significant weight in an equitable distribution system.
Negotiations and Settlements
Alternative Dispute Resolution Options
Mediation and arbitration give couples a constructive way to negotiate asset division without contentious litigation. These methods encourage collaboration and open communication, paving the way for more amicable settlements.
Negotiating the Division of Collectibles
To successfully negotiate the division of collectibles, provide thorough documentation of each item’s value and history. Approach discussions with a clear understanding of both parties' interests and priorities. Keeping emotions in check and focusing on factual evidence can facilitate a fair and respectful negotiation process.
Examples of Fair Settlement Agreements
Fair settlement agreements might involve one spouse retaining ownership of a high-value item. The other spouse can be compensated with assets like real estate or savings accounts. The parties could also sell the collectibles and equally divide the proceeds.
By exploring creative solutions, couples can achieve equitable and satisfactory outcomes that respect the value of their cherished items.
If you are concerned about your valuable collection in a divorce, reach out to Lane & Lane, LLC today. We can review your case and help you choose your next steps. To schedule time with our team, call us at (908) 259-6673 or contact us online.
