During financial remedy proceedings, spouses provide full and frank disclosure. This includes all personal belongings which have a value of £500 or more. Yes, this includes that luxury handbag collection you spent years building up and the expensive jewellery you wear on those special occasions. These days, more and more people are investing in luxury items which has resulted in an increase of 'handbag divorces'.
A handbag divorce refers to the material assets, such as jewellery, high-end cars and tech, even that fine wine you have spent years collecting, that are between two spouses and the when/how they must be divided between spouses during a divorce.
What are the Challenges in respect of Handbag Divorces?
- Where spouses are unable to agree the value of these luxury
items, including gold and jewellery, then obtaining a professional
valuation will become inevitable in the same way it would in
respect of property and other types of assets.
- Couples are less likely to reach a financial settlement outside of court or in the early stages of financial remedy proceedings
How should Luxury Items be Divided between Spouses?
The general principle is that all matrimonial assets acquired during the marriage should be divided equally between the spouses. However, the court will take into consideration a number of factors and may depart from equality.
Where luxury items were bought and acquired before the marriage, these will generally be ring-fenced from the marital pot and classed as non-matrimonial.
A remedy available to limit the challenges posed by handbag divorces are pre and post-nuptial agreements. Although these are not legally binding in England and Wales, they can hold some persuasive weight in Court if certain criteria is satisfied.
Originally published 09 August 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.