During a divorce, an art collection can be a considerable asset, and dividing it can become an emotional process. If you are a Tennessee resident with an art collection, and you might be getting a divorce, protecting your art collection will be a major concern.
A prenup or postnup can help protect your collection
While you might not want to think about divorce before or just after you have gotten married, divorce is a possibility for about 50% of marriages. Therefore, you might want to go into the marriage protecting assets you have already acquired, which can include an art collection. However, if you bring an art collection to the marriage with the intention of keeping it as a separate asset but then use marital funds to maintain or restore the pieces, you are commingling assets and opening the door for the art collection to be considered a marital asset during the division of property.
Tips for protecting your art collection
If you are passionate about art and with to protect your art collection if you divorce, there are some things you can do. These include:
- Keeping detailed and updated records regarding the pieces of the collection
- Being very careful to not use marital funds in relation to a collection that is considered separate
- Agreeing with your spouse about the value of the collection after an appraisal has been made
- Preparing to negotiate with your spouse by exchanging other assets for the art collection
Collecting art is both a passion and an investment. In a divorce, however, the art collection will only be considered an asset with a clear monetary value that must be accounted for during negotiations. Make sure you know its value and what you are ready to give up, if necessary, to keep the collection together.