When a couple makes the decision to get divorced, they will have to go through the process of equitable distribution to divide marital property. Sometimes when the attorney lists all of the assets that are apart of the marital estate, they come across collections. Like any other part of the marital estate, the collection must be valued. In some cases, collections can be worth an incredible amount of money and can result in a contested matter between the two parties. Collections can include anything from art to Beanie Babies to stamps to coins, and everything in between.
One factor that the couple or one of the parties may have a hard time with during the valuation is the difference between the fair market price and the purchase price. One situation that happens frequently is when a collector pays a lot for an item and upon valuation, it has lost a significant amount of the value. This often becomes an issue in divorce because when one spouse spends a lot of money on an item that is supposed to be worth a lot but no longer is, the other spouse may try to use this against them in a divorce. Couples need to keep in mind that purchase price is not relevant in determining the value and only the fair market price is considered. If you are struggling with these matters in divorce, contact our firm today.
Before taking action, it is important to discuss your legal matter with an experienced attorney. Contact The Radol Law Firm to discuss any divorce and family law matters you may be faced with.