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
In Indiana, in the absence of a prenuptial agreement or a postnuptial agreement, marital property includes all assets, 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.
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 a divorce. In other cases, one spouse may retain the item while compensating the other with cash or other property of equal value. This approach may ensure 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.