How are car collections treated by the court in divorce?

High-net-worth individuals often possess vehicles that are for much more than transportation; these might be collectibles, luxury items, or investments.

Generally, collectibles that are acquired before the marriage are considered non-matrimonial, and kept separate. However, collectibles purchased during the marriage are matrimonial assets subject tothe sharing principle.

A car is an asset, much like jewellery or art, and must therefore be disclosed as part of the financial disclosure process on divorce. Some, all or none of a car collection may be marital property, and if the collection is part of the marital estate, then the car-enthusiast spouse may choose to retain the collection by, in effect, buying out the other spouse’s interest. However, in the situation where there is only enough in the matrimonial pot for the needs of the spouses, then the car collection may need to be sold, and the proceeds divided.

Properly assessing the value of your collection is crucial to reaching a fair settlement. If you have classic cars, you may need help from an expert valuer to determine your property’s value and ensure the legitimacy of your valuation.

Vardags’ team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses.  

If you’re considering or going through a divorce with a car collection involved, we can help. Click below for a free initial consultation with one of our expert divorce solicitors. 

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