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Gold coins can be an excellent investment for married couples. But when that marriage ends in divorce, there’s not always a clear-cut solution concerning how those gold coins should be allocated. Are they considered marital property that should be divvied up between the divorcing individuals? What happens with the gold hinges on several factors, including your location and records. Read on to learn more!
State-Based Decisions on Dividing Property
During a divorce, different states follow different systems when it comes to dividing property. Most states follow the equitable distribution method, which results in a relatively even distribution of property according to the judge’s decision. They’ll consider the financial status of each person and the role each person played in buying, however, which may not result in an even split of assets.
Knowing what to do before starting a divorce can also help couples prepare for how assets may be handled.
Some states, like Texas and California, are considered community property states. In these states, assets generally are split down the middle with the idea that they are owned equally by both individuals during the marriage. Consequently, gold coins will be divided equally between spouses.
Special Conditions
Not all scenarios follow the aforementioned property guidelines if there are special considerations. For instance, some gold may have been purchased prior to the marriage, or it may have been given to one spouse as a gift from a family member. Or perhaps one spouse inherited coins from someone in their family. Generally, gold coins that have been passed to a specific family member through a will are considered separate property. It’s best to keep all documentation, such as estate paperwork or appraisals, with high-value gifts like gold coins to establish a clear connection to one spouse.
Ultimately, special instances require tracing the origin of the coins to demonstrate that they are aligned with a particular spouse. Purchase records, like receipts or invoices, can show that only one spouse chose to buy Gold Eagle coins prior to the start of the marriage. Even product descriptions can help show that only one spouse should have ownership after the divorce. Not having paperwork can result in a court classification of the coins as marital. When in doubt, save all receipts and store gold carefully so it’s easier to access pertinent details about its origin.
Common Considerations
Other situations can make the division of assets during a divorce more complicated. For example, with commingling, a spouse could use inherited coins to finance a purchase during the marriage. In this situation, the courts could determine that everything now is marital property. If possible, couples should avoid comingling funds to steer clear of these scenarios.
Remember that gold prices are changeable, too. Determining how much the gold is worth can be another sticky situation during divorce. Some states will assign value at the time of a couple’s separation, whereas others will use the date of a divorce trial. If there is a big price change, that can greatly affect how much each spouse receives. Additionally, if one spouse thinks the other is concealing coins to avoid losing them during the divorce, they can make a discovery request. Both spouses should be aware that there are penalties for hiding coins that could result in fines.
How to Handle Gold Coins During Divorce
While gold coins can be marital property, many factors will impact the final decision. Spouses should be mindful of documentation when it comes to assets like gold. For a spouse hoping to prove that they are the sole owner of a set of coins, documentation is essential. But in situations where coins were purchased during the marriages, how those coins will be split is less obvious. Keeping all purchase records, appraisals, and other relevant documents can make a huge difference in divorce situations.
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