Following a recent article in De Tijd, we seek to provide an answer to the question of what happens to luxury goods such as watches and branded handbags in the event of a divorce.
In divorces, the question sometimes arises whether luxury goods such as jewelry and handbags are considered personal or communal property.
When these items are purchased during the marriage as investments, they are considered communal property under the legal system.
However, where these goods have undeniably gained significant investment value in recent years (think, for example, of the ever-increasing value of an exotic leather Hermès bag), it is often argued that such items still have a personal character.
Yet, these goods are often purchased as gifts or on special occasions.
It can also be argued that they are personal belongings, thereby also possessing a personal character and not requiring division between the spouses, but rather should be allocated to the individual who possesses or wears the items.
Whether or not they are personal belongings is determined by the notary-settler and later the judge.
In the event of a dispute, it will always be up to the judge to assess, taking into account the specific circumstances, whether the jewelry is personal or communal property.
The financial situation of the ex-spouses is often determinative in this regard.
The Court of Appeal in Antwerp ruled as follows a few years ago:
“Whether a collection of expensive branded handbags can still be classified under the goods mentioned in Article 1401,1 of the old Civil Code is a sovereign factual appreciation by the judge (…). The Court is of the opinion that a collection of handbags from exclusive brands such as Delvaux and Louis Vuitton transcends the label of ‘personal belongings,’ particularly in light of the parties’ financial situation.”
Regardless of these goods’ personal or communal nature, they often disappear like snow in the sun when tensions between spouses run high. It is particularly difficult to demonstrate, in the context of liquidation and distribution, 1) that these goods were present and 2) that the other spouse currently retains them.
Need professional and discreet advice on the distribution of assets in a divorce? Feel free to contact our team to see how Keyser Advocaten can assist you.
