Divorce, a challenging juncture in one’s life, brings about various discussions about the many aspects of a separation.
Key among these is the division of assets.
From properties and investments to items of sentimental value, splitting these possessions can be an emotional and complex process.
(Read Time: Approx. 3 minutes)
Topics Discussed:
- How designer handbags have emerged as significant financial assets, with some pieces appreciating exponentially over the past decade.
- What this means for asset division in divorces, highlighting the potential overlooked value in luxury handbag collections.
The Role of Prenuptial Agreements
A clear distinction is observed between couples who had the foresight to sign prenuptial agreements and those who didn’t.
Prenuptial agreements tend to streamline the division, offering clarity on which assets belong to whom.
In the absence of such an agreement, there’s a wider scope for deliberation and possible contention.
The Surprising Value of Designer Handbags
While property, shared investments, and savings are the usual suspects in these discussions, there are often overlooked assets that might hold significant value.
One such unconventional yet increasingly noteworthy asset considered in a divorce are designer handbags.
Designer handbags, especially from esteemed brands like Hermès, Chanel, and Louis Vuitton, have evolved into an influential asset class.
Over the past decade, the value of certain bags has escalated exponentially, offering returns that rival more traditional investments.
Investing in Handbags: Trends and Returns
The allure of any particular designer handbag isn’t just about fashion but also as significant financial assets.
Over the past decade, for instance, the price of the medium Chanel classic flap bag has surged by an additional $10,200, illustrating the remarkable appreciation of some of these luxury items.
Credit Suisse’s observation is particularly telling in this context: Chanel handbags, along with traditional Chinese artworks and wristwatches, stand out for their inflation protection.
The growing popularity of handbags as collectibles is evidenced by their surging prices in the primary market.
Recognising this trend, established institutions, such as the auction house Christie’s, have ventured into this domain.
In 2022, Christie’s achieved a record sale of $32.8m from designer handbags – a remarkable figure considering they only started standalone handbag sales in 2012.
Specialised Services for Handbag Enthusiasts
For enthusiasts keen to delve deeper, Christie’s Asia Pacific division even offers a dedicated handbag investment course, priced at £390.
These services extend beyond just purchasing; they also offer storage solutions, recognising the critical role condition plays in determining a bag’s value.
A Glimpse at Potential Returns
To gauge the magnitude of returns one might anticipate, consider the Hermès Kelly Cut So Black adorned with feathers.
Part of the So Black collection curated by Jean Paul Gaultier in 2010, an initial investment of £10,000 in this bag could see its value escalate to an astonishing £250,000 today.
Conclusion: The Hidden Gems in Asset Division
In conclusion, as couples navigate the labyrinth of asset division during divorce, it might be prudent to give that wardrobe a second glance.
Those designer bags, often dismissed as mere luxury indulgences, might just hold the key to a substantial financial settlement.
To find out if some of your assets could be considered for assets in a divorce, or for any general divorce questions, don’t hesitate to reach out to Solicitor Divorce today.
Contact us using the form here to know more. Alternatively, call us on 01772 282768