For wealthy car lovers the Supercar has become a must have. The media regularly reports on the performance and classic vehicles owned by celebrities. They have also taken to reporting from Supercar “hotspots”, such as Alderley Edge in Cheshire, where the number of Supercars is so high that “Supercar spotters” are now visiting from around the country solely for the purpose of seeing and photographing Ferraris, Lamborghini’s, McLarens and other performance vehicles.
In most divorces the values of the couple’s cars (if owned rather than leased) are often relatively modest, particularly once any finance has been factored in. These cars are depreciating assets and seen far more as an item that each spouse needs to enable them to function in their day to day lives. By way of contrast Supercars are a non-essential valuable asset and their value may well be included in the assets to be divided between a couple if they divorce.
Valuing a Supercar or a classic vehicle is a little more complicated than valuing the average car, where an online valuation can be obtained which factors in the mileage and condition of the car. An expert dealership can be a good place to obtain a valuation for some of these vehicles.
Classic cars often require specialist valuations, particularly if the car has some special provenance – for example it took part in a famous historic race. Specialist valuers and auction houses, such as Bonhams and Christies, are often instructed to prepare valuation reports for use within divorce proceedings for vehicles of this nature.
What can be very hard to value accurately is a car that has been purchased but not yet made and delivered to the owner. When a new model of Supercar is announced only a limited number of cars are made. The purchaser commits to buying the vehicle from the dealer at a specific price. Whilst most ordinary cars start depreciating in value as soon as they are driven off the dealer’s forecourt, some Supercars can increase in value after they have been delivered, due to their popularity and the fact that only a limited number have been made. The opposite can also happen to a Supercar’s value if it “flops” for some reason.
Other items of value, such as artwork and watches, are also items that are often valued within divorce proceedings. Collecting high end watches, such as Rolexes, has become very popular in recent years They, like Supercars, are often seen as a good investment as well as having a personal and collectable value to the owner. At present CGT is not payable on the sale of watches and most cars, which makes them more attractive to invest in.
If a Supercar or other valuable assets were acquired during the marriage, they are likely to be considered matrimonial assets and be included in the assets that are divided between the couple if they divorce. If the assets were gifts or inherited, they may not be considered matrimonial and may potentially be excluded from the assets to be divided between a couple if they divorce. It is therefore important that if you are thinking of getting divorced that you obtain legal advice from an expert lawyer who has had experience of dealing with assets of this nature.
