What will happen to my art in my divorce?
A lot of Las Vegas couples collect art together, and in some relationships where one of the spouses is an artist, they create art. Interestingly, art that is both created and collected during the course of a marriage will be considered as marital property during divorce proceedings. That means that both these categories of art will need to be divided.
This need to divvy up art can create a lot of headaches — because different spouses may have different opinions about what the art is worth, and art can have both sentimental and actual value. To make matters even more confusing, a lot of art appraisers will have varying opinions about the true value of the art — and those differences could be to the tune of tens of thousands of dollars.
On top of valuation and appraisal concerns, spouses also need to consider the tax liabilities associated with each piece of art. Some art that has appreciated in value will have capital gains taxes associated with it upon sale. Other art that has depreciated in value will not have capital gains taxes and tax losses might be claimable on the item after sale. These concerns definitely need to be considered in any asset division process.
Nevada spouses who need to divide art assets in a divorce may want to discuss that matter with their divorce attorneys, and consult with an appraiser and tax specialist. These professionals will be able to provide appropriate guidance to help the spouses divide their art assets in the fairest possible way.
Source: Huffington Post, “Artwork Gets Thrown into the Mix When Artists Divorce,” Daniel Grant, Oct. 24, 2016