When high-net-worth couples go through a divorce, certain valuables can become a focal point for the division of assets. Take fine art, for example. These types of collections, which may include paintings, sculptures, or other pricey works, can represent significant financial and emotional investments on behalf of the couple. Additionally, such pieces often increase in value over time. Therefore, determining their current value requires the expertise of professional appraisers, while deciding whether to divide the collection or sell it entirely adds another layer of complexity. It’s a process that combines art, finance, and tactful negotiation in equal measure.

Determining the Value of Fine Art

Valuing fine art is a meticulous process. Professional appraisers assess factors like market value, the piece’s history, the artist’s reputation, whether the artist is living or deceased, the condition of the artwork, and demand for similar pieces. Tax implications also come into play when transferring ownership or retaining art. Enjoining the expertise of a tax professional experienced in such valuation can help.

Ownership Challenges

Ownership of art isn’t always clear-cut, especially when pieces were acquired during a marriage. For example, in Anonymous v. Anonymous, 150 A.D.3d 91 (1st Dept. 2017), a New York couple disputed ownership of a multimillion-dollar collection. Despite invoices being in the husband’s name and a prenuptial agreement designating art purchased during the marriage as separate property, the wife argued the collection was joint property. Such claims can prolong the legal process and increase costs.

Protecting A Collection

To avoid uncertainty, couples may wish to take steps to safeguard a collection in case of divorce:

Document Ownership: Ensure each purchase comes with a certificate of title or proof of ownership.
Clarify Agreements: Include specific terms in prenuptial or postnuptial agreements whenever possible, for example, clearly stating that the party who paid for a piece of art will retain its ownership.
Update Insurance: Regularly reviewing and updating insurance riders will reflect the proper patronage of both present and new acquisitions.
Document Locations: Identify where the pieces are (or should be) displayed or stored. In some cases, valuable pieces have “disappeared” into storage when one spouse wished to withhold them.

Identifying the value of a fine art collection during divorce requires expertise, thoughtful planning, and open communication. Mediation can offer a less contentious and private path than litigation, and creative solutions—such as alternating display rights at each spouse’s home—can preserve enjoyment of the art while addressing ownership concerns.

When facing these kinds of disputes, it is always a smart move to retain an attorney experienced in high-income, complex divorces. If you have come to the point where you are considering divorce and want to protect your assets, contact the top Bucks County family law attorneys of Williams Family Law for help by phone at 215-340-2207, or email us at info@bucksfamilylawyers.com.