News

Amy Scollan discusses divorce and luxury assets

  • February 02, 2021
  • By Amy Scollan, Partner

Divorce and Luxury Assets

In the majority of divorce cases, the primary concern of the parties, and the Judge, is ensuring that the parties each have a home and an income to meet their outgoings. In high net worth (HNW) divorces, this concern is often not the focus of the dispute, as housing and income needs can easily be met from the wealth in the marriage. In HNW divorces, the dispute is often around the distribution of the assets which are in excess of the parties’ needs.

Hunters’ Family Team has many years of experience in dealing with HNW divorces and negotiating the distribution of luxury assets such as:

  • Wine collections
  • Art
  • Classic cars
  • Yachts
  • Jewellery.

The distribution of luxury assets between the parties in HNW cases can be the source of much dispute on divorce. Issues we regularly address include:

  • One party to the marriage has a keener interest in luxury assets than the other, yet the other seeks to retain the luxury asset(s) as a way of achieving leverage in the overall negotiation;
  • One party suggesting that a valuable asset be sold in order to provide liquidity, whilst the other has a stronger emotional attachment to the asset and wishes to avoid a sale;
  • Disputed ownership, where one party claims that the asset is owned by, or co-owned with, a friend or family member;
  • Valuation disputes – it can be difficult to value unique items, and the party who is keeping the asset will have an interest in arguing for a lower value and vice versa. Often experts are instructed to provide valuations; and
  • Family heirlooms. One party may argue that an asset which has come to them from their family should not be shared within the divorce proceedings.

Judges can adjudicate disputes about personal and luxury assets, but often the issue is too important, for emotional and financial reasons, for a party to want to risk a Judge deciding it – in case the decision is not favourable. Therefore, the distribution of luxury assets is often decided following a negotiation, which can be lengthy, between the parties’ solicitors, as part of the overall settlement of the case.

If you have any questions or queries about divorce and luxury assets, please contact Partner Amy Scollan on amy.scollan@hunterslaw.com Tel: 07778858670


Related News

Jun 22, 2021
Jo Carr-West and Lara Barton discuss CGT for divorcing couples in WealthBriefing’s Family Wealth Report
Jun 15, 2021
Eri Horrocks discusses what separated parents must consider when wanting to relocate within the UK
Jun 10, 2021
Henry Hood and Nicole Derham discuss what separated parents should be aware of when taking their children abroad on holiday in The Times
Jun 09, 2021
Amy Scollan comments on DIY and ‘quickie’ divorces and why they aren’t appropriate for UHNW clients in Citywealth
May 20, 2021
Henry Hood examines Frederick Barclay’s £100m divorce settlement following a High Court battle in EPrivateClient
May 17, 2021
Nicole Derham discusses separated parents taking their children abroad as international travel reopens
Apr 27, 2021
Eri Horrocks discusses arrangements for divorcing couples with pets during National Pet Month
Apr 26, 2021
Polly Atkins examines whether a former spouse can be required to pay rent pending the sale of the family home in STEP Journal+
Apr 22, 2021
Henry Hood comments on Tatiana Akhmedova winning a High Court lawsuit against son in £450m divorce battle in WealthBriefing
Apr 14, 2021
Jo Carr-West discusses a new approach to domestic abuse in the Family Court

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)