How to Value Art and Collectibles In an Arizona Divorce

You’ve worked enthusiastically over the years to build a cherished collection of artwork and collectibles, many with significant sentimental and financial value. When going through an Arizona divorce, separating these assets under the state’s community property laws requires precise financial disclosure. The most effective way to accurately value your art, antiques, and collections, and determine whether they are separate or marital property, is to work with an experienced Chandler divorce lawyer early in your case.

Whether your spouse contributed to the collection or you acquired it before marriage, taking the right steps toward an official appraisal will protect your financial interests.

Separate vs. Community Property in Arizona Divorces

A divorcing spouse in Arizona can retain their separate property if it belonged to them and didn’t become commingled with their spouse. Art, antiques, and collectibles may be your separate property if they belonged solely to you before the marriage, or if they were family heirlooms inherited by you during the marriage. They are also your separate property if they were gifted solely to you by someone other than your spouse.

Unfortunately, your spouse may still have a valid claim on a portion of the valuable items if commingling occurred. Commingling happens when one spouse gives the other access to their separate accounts or property. For instance, if your spouse added to your collectibles, restored your antiques to mint condition, or contributed to your art collection, they are entitled to half of each item’s improved value.

Beginning with valuation of the items in your collection for your financial disclosure process is crucial.

Hire a Certified, Experienced Appraiser with Good Reviews

First, it’s necessary to make a complete inventory of your artwork, collectibles, antiques, and other household property of significant worth, such as jewelry or rare books. In the inventory, include details of when you or your spouse acquired each item. Then, gather any documentation of validity for each item. Finally, hire a certified appraiser for the valuation process, preferably one from a respected entity such as from the Apraiser’s Association of America.

The Valuation Process for Art, Collectibles, and Antiques

Professional appraisers perform thorough assessments of each piece of artwork or collectible by doing the following:

• Verifying its authenticity and documented history of ownership
• Investigating the current market trend, market demand, and the reputation of the piece’s creator
• Inspect for damage in the item’s condition that could lower the piece’s value
• Evaluate the item’s rarity or scarcity, such as determining if an item is limited edition, one of a kind, or a rare piece or artifact

All of the above aspects of an art piece, antique, or collectible are pertinent to determining its total value.

What If Both Spouses Perform Separate Valuations and Emerge With Different Results?

Sometimes, each spouse has separate valuations and appraisals conducted for their cherished items. If the estimated values for each item are similar, the spouses can negotiate with the help of their attorneys and decide on the best path forward.

When significant discrepancies occur between two appraisals, your Chandler family law attorney can guide you through alternative dispute resolution or help negotiate a fair settlement before trial.

Common means of meeting Arizona’s requirement for equal division include the following:

• The spouses may sell the art and collectibles and split the total value of the items 50/50
• One spouse can buy the other out by paying the appraised value for the art and collectibles from their portion of the marital funds
• If one spouse has a sentimental attachment to specific pieces, they can “trade” for a piece of equal or near equal value that the other spouse wishes to keep

If each spouse’s valuation results differ greatly from the other’s, they may choose to hire a neutral third party or average the two assessments for each item, then sell or trade at each asset’s averaged value.