When couples divorce, many assume that the wife automatically gets to keep the jewelry. The truth is, the division of jewelry in a divorce often depends on the type of jewelry, its acquisition and the laws of your state.
The distribution is not straightforward
In general, jewelry does not automatically go to the wife after the couple calls it quits. The distribution of jewelry, like other assets, depends on various elements:
- When was the jewelry acquired (before or during marriage)?
- Who purchased the jewelry?
- Who was the intended recipient of the jewelry?
- What is the value of the jewelry compared to other assets?
- Are there any prenuptial agreements in place?
- What is the financial situation of each spouse?
Sometimes, couples may agree to divide jewelry amicably without court intervention. They might split pieces equally or assign a monetary value to each item and balance it with other assets. If they cannot agree, the court will decide.
Colorado follows equitable distribution principles. This means the court usually divides marital property fairly but not necessarily equally. Typically, the separate property stays with its original owner.
For example, the court may consider an engagement ring given before marriage as a conditional gift. Once the marriage occurs, it becomes the separate property of the recipient. However, a diamond necklace purchased during the marriage with joint funds would be marital property.
Protecting your investments
The value of jewelry can be substantial for high-income couples. It is crucial to approach the division of these assets carefully. Accurate appraisals and documentation of ownership history can play a significant role in negotiations or court decisions. Those unsure about the fate of their jewelry often find it advantageous to seek the experience of a skilled divorce attorney.