Recently, the value of ‘passion assets’ such as handbags and watches have seen a surge of investment growth. The latest Knight Frank Wealth Report showed that handbags saw a 67 per cent investment growth over a decade, while watches saw a 138 per cent growth over the same period. So, how do these non-traditional assets come into play during divorce proceedings, particularly if they've become more valuable since initial purchase? ‘Parties to a divorce have a duty to provide full and frank financial disclosure of all their assets, liabilities and incomes,’ says , adding: ‘This includes personal belongings with a re-sale value of £500 or more.
The important word here is 're-sale' and not the price paid.’ Langton says that luxury items are increasingly becoming a dominant feature during divorces. ‘Vintage watches, Birkin handbag collections or iconic Vivienne Westwood pieces might well grow in value throughout a marriage, and even outperform more conventional investments.
What we are seeing in divorces highlights an emerging trend: some handbags and clothing are, in essence, works of art and consequently appreciate in value. As such, luxury items should be disclosed and valued in the same way as any other asset. An independent expert can be appointed by the court, if necessary, to prepare a formal valuation.
Most auction houses have dedicated teams who are able to provide valuation reports for court purposes where the couple is unable to reach agreement.’ There h.