Division of Personal Property in a Divorce
“ Half of all marriages end in divorce—and then there are the really unhappy ones”. ~ Joan Rivers
It’s a sad part of life when a marriage ends. In Ontario, personal property acquired during a marriage must be divided equally when a marriage ends for any reason. Personal property is defined as; automobiles, furniture, money, collections, fine art, memorabilia, wines & spirits, jewelry (unless given as a gift). Everything else that is not personal property is considered real estate or business related. This is why you need to consult with an attorney who specializes in divorce cases involving real estate, businesses, intellectual property (patents, literary & artistic works, symbols, names, inventions, etc…) or high value property. (such as a rental property)
Depending on your situation, each case is different. Please seek the services of the appropriate qualified professional to handle your case. If you do not know anyone, ask your friends for recommendations. Sometimes you need to talk to and interview several professionals to see who you feel more comfortable working with. Here are two cases to help explain the role of experts in a divorce case.
The Case of Mary & John Smith (fictitious names, no association with anyone living or dead). They have decided to divorce, they own a house, 2 cars, 2 cats, 2 dogs and household goods. They have separate retirement accounts and savings accounts. If they can come to an agreement. John and Mary can divide the personal property any way they want in a separation agreement. They would need to hire a qualified real estate appraiser to determine the value of the house and agree on how to divide it. Each party should have their own attorney review the separation agreement before the parties sign it. Once signed, it cannot be easily changed later.
The case of Mrs. & Mr. Money Bags. (fictitious names, no association with anyone living or dead). They have a large home outside of Toronto, a condo in Palm Beach, and another condo in downtown Toronto. They have a collection of art, fine wines, haute couture for men and women, watches, jewelry, cars. The house is filled with high end museum quality furniture and decorative art. Mr. Money Bags also has a large record collection and a very high-end audio system. We were contacted by their separate attorneys almost simultaneously. We explained our process to each of the attorneys and explained that we had already been retained for this case. The attorneys decided to hire us because the assignment required us to hire 2 other qualified colleagues who are also members of the International Society of Appraisers.
We had to work room by room, documenting, recording all information, dimensions and photographing each item. Just doing this easily takes 10 minutes per item, and depending on what the item was could have taken 20 to 30 minutes as in the case of fine art paintings or sculptures. In this case, we were not photographing items of low value. The furniture was of the highest quality and from an antique era. It took time just to examine each piece with all the information recorded, as the potential value would be very high. After spending a few days in the main house, we needed to examine the contents of the other two condos. Once we completed our on-site documentation process, our work to find comparable & research and write up a manifest. In cases like this, it is very easy to produce a 200 to 300 page document. The divorcing couple would each receive a copy and the two attorneys would receive copies of the reports. The reports provide the divorcing couple with the information they need to make decisions. In their case, they would also have consulted with accountants for any potential tax issues.
As qualified appraisers, we have a responsibility to our clients to provide accurate, well-researched information using a professional process.
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About the Author
John H. Grow, ISA-AM, is a partner in the appraisal firm Prestige Evaluation Inc. The firm specializes in antiquities, watches, clocks, jewelry, fine art, and collectibles in general. John works with clients worldwide, museums, corporations, foundations, financial / Insurance firms, and government agencies. He regularly appears on radio and television shows and charity appraisal fairs. A long-time member of the International Society of Appraisers. (ISA) & Canadian Chapter of the ISA.
