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How your classic car can affect asset division

June 15, 2022 | Divorce, Firm News

When you divorce your spouse, the court will divide your assets based on what it considers fair and equitable. The court analyzes your financial situation, trusts, businesses, property, child support, accounts and any pre- or post-nuptial agreements.

The proceedings are not as simple as dividing the property during a complex or High-Net worth divorce.

How to split assets, including classic cars

In complex divorce cases, it may take more steps to determine your assets’ value. You have to consider taxes, debt liabilities, depreciation and appreciation. If you have a High-Net worth divorce, it can make the procedure and substance more complex. For instance, you may have a tax deduction in the following year worth a similar value to your vehicles.

If you have classic cars, you may need help from a forensic accountant to determine your property’s value and ensure the legitimacy of your valuation. Simple divorces require a lot of paperwork, but you need to keep track of much more in complex proceedings.

How to determine the value of your classic cars

Most classic car collectors spend a lot of money on the vehicles they purchase. You may spend thousands of dollars restoring a vehicle or maintaining it. There are two different values for classic cars. You have the stated value and agreed value. The stated value is your understanding of its value and the agreed value is what you find on your policy. To determine a car’s value, you have to consider the year, model, body type, VIN, engine size and condition.

To determine the actual value of a classic car, you may require help from an appraiser.

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