Dividing luxury assets in a divorce can be complex, particularly when the marital estate includes high-value items like art collections, yachts, and fine jewelry. Indiana law follows an equitable distribution model, which aims to divide property fairly, though not necessarily equally.
Understanding how courts handle these assets can help both parties during this process.
Identifying and valuing marital assets
The first step in dividing luxury assets is determining which items qualify as marital property. In Indiana, marital property generally includes all assets acquired during the marriage, regardless of whose name is on the title. Valuation of these assets often requires input from experts, such as appraisers or auction houses, to determine their fair market value.
Determining ownership and contribution
Courts consider several factors when dividing luxury assets, including each spouse’s financial and non-financial contributions. For example, if one spouse purchased a yacht with personal funds, the court may classify it as separate property. However, if both spouses contributed to maintaining or improving the yacht, it might be subject to division.
Selling or distributing assets
For some high-value items, such as rare artwork or vintage cars, selling the asset and splitting the proceeds may be the most practical option. In other cases, one spouse may retain the item while compensating the other with cash or other property of equal value. This approach ensures a fair division without forcing the liquidation of assets with sentimental or unique value.
Protecting assets during divorce
It is important to protect valuable items from being sold, hidden, or damaged during the divorce process. Courts can issue orders to preserve the marital estate, preventing either party from disposing of assets without permission.
Moving forward after the division
High-asset divorces require careful attention to detail, especially when luxury items are involved. Addressing ownership, value, and contributions ensures a fair outcome that reflects both parties’ interests and rights under Indiana law.