The division of assets is a complex and often contentious process in situations involving numerous high-value assets. For example, yachts, which are symbols of wealth and luxury, can hold significant financial and emotional value. As such, they may become points of contention during divorce negotiations or litigation.
The fate of a yacht in divorce can be determined by a couple or by a judge, if a couple can’t reach a mutually-agreeable arrangement.
Division of assets
In community property states like California, assets acquired during the marriage are considered joint property and spouses’ interest in them are typically divided equally. If a yacht is marital property, it might be sold, with proceeds split between the parties, or awarded to one party, possibly with an arrangement to compensate the other through the award of different assets.
Many high-net-worth divorces are settled out of court to avoid public scrutiny and protect privacy. In these cases, the division of spouses’ interest in a yacht may be negotiated as part of a larger settlement agreement.
Operational and maintenance considerations
Yachts require significant operational and maintenance expenses. In some cases, the decision about the yacht’s fate may be influenced by the willingness or ability of one party to bear these costs post-divorce. If neither party desires to keep the yacht due to its upkeep, selling it and dividing the proceeds becomes a practical solution.
Emotional attachments and practical use
The emotional significance of the yacht to either party can also play a crucial role in determining its fate. If the yacht is a cherished asset or closely associated with personal memories, one party may be more inclined to fight for its possession. On the other hand, practical considerations, such as the frequency of use and the yacht’s logistical arrangements, can influence the decision to retain, sell or transfer the yacht.
Anyone going through a high-asset divorce should ensure they have proper legal assistance. Every decision can have a significant impact on the future, so they must all be considered carefully.