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During the months of lockdown, values of designer handbags (and dresses, shoes and jewellery) soared, as too unfortunately, did the number of marriages breaking down. Whilst most couples try to come to an agreement over who keeps the house and car, designer couture and accessories are causing battles of their own amongst the rich and famous in society.
As reported in a recent FinancesOnline article, the top most expensive handbag of 2022 so far is a Mouawad 1001 Nights Diamond Purse valued at $3.8 million, with six of the top 10 most expensive purses being designed by Hermès and the remaining three brands including Lana Marks, Niloticus and Chanel.
When it comes to the value of handbags as assets, those designed by Chanel and Hermès are considered the best investments, with their most simple and ‘cheapest’ designs selling for several thousands of pounds each.
Fashion bloggers Hayden NG and Shazrina Shamsudin posted details of 15 designer bags with the best resale values on HerWorld.com earlier this month noting that Chanel increased their prices three times during 2021. So, it’s no wonder these items which prove to be valuable investments, are causing rifts between divorcing couples.
Divorces can be extremely expensive so retaining valuable assets can all help towards the cost of legal fees as well as maintaining a balance sheet once proceedings are over and you are living alone.
A typical wealthy family dynamic is made up of couples where mostly the husband works in a well-paid job, able to afford designer handbags, shoes, dresses, jewellery and perfume for birthdays or Christmas.
Perhaps being away from home a lot for work while the wife stays home looking after their children, or coming through a worrying illness diagnosis inspires the husband to show his appreciation by buying expensive items including art pieces, a car, or boat as an additional occasional gift?
What a shock and outright insult it would then be to discover in legal instructions following a divorce, that what were given as gifts would actually be considered joint property to be valued with all the other matrimonial assets as items accrued during the marriage and to be divided!
In a Daily Mail article, Divorce Coach Sara Davison quotes a client whose husband worked in finance: ‘She always had to look a certain way, because it was really important to him to show that he was incredibly wealthy,’ she recalls. ‘She didn’t have a savings account – she was completely financially dependent on him – but she hosted dinner parties and trips for his contacts, and he would have her dripping in diamonds every time, because it helped his business. When they divorced, though, he denied that these were gifts for her to keep. All her jewellery was treated as a shared asset.’
Whilst the law does recognise a gift, when it comes to divorce and who keeps what, it becomes hard to prove – if your valuable belongings were gifts from your spouse, it’s your word against his. Nobody thinks to document every gift bought / given or the reason for a gift, but perhaps keeping a journal where happy moments like this are recorded could be used as evidence.
For couples who are getting married, it might well be worth considering listing high value items you own prior to entering into the marriage in a prenuptial agreement. Whilst not legally binding, if you state that with agreement of the other party you would like to retain specific items including art pieces, your collection of designer handbags, dresses, and jewellery for example, it would be likely to be upheld by the divorce courts.
In order to make the most of your valuable items, either to accrue on the divorce balance sheet or to use as an investment ensure you keep the item well maintained and protected. The Luxury Handbag Report 2020 points out that the item’s condition will also determine its selling price in the resale market. Tempers can run high during a divorce and – we’ve all heard about wives slashing their husband’s designer suits – it can happen the other way too!
The afore mentioned Daily Mail article given the example of the 2016 divorce between model Christina Estrada and Saudi billionaire Sheikh Walid Juffali where a blue diamond ring that he said had been bought for $4 million had mysteriously disappeared; when the judge ordered its whereabouts to be disclosed, Juffali admitted he’d given it to someone else.
If there is infidelity involved resulting in the divorce, you may want to consider selling items that were potentially given as ‘guilt gifts’ to be able to move on, so another reason to keep tabs on your designer items through divorce proceedings.
If you’re in ownership of high value items that you either had before your marriage or were given as gifts during a marriage, and you’re thinking of getting a divorce, I hope this blog has helped outline the importance of your assets! If you’d like some personal advice I am available to help over the phone on 07917 711 887 or by email to lindsay@lindsayjonesdivorcelawyer.co.uk. You can also download free guides & resources on my website here: lindsayjonesdivorcelawyer.co.uk.