What Happens To Gold Bullion In A Divorce Property Settlement?

Gold is commonly considered an image of the prosperity, stability, and the security in the long perspective. Gold bullion is also an asset that is held by many couples in their joint accounts by their investment in gold or a family heirloom.

However, when a marriage is broken, a question arises as to what becomes of these valuable assets when one is going through a divorce property settlement.

What is the law of gold bullion? What influences its segregation? And what are the practical measures that should be taken by both sides in order to secure fairness?

This post gets to the point of gold bullion in property division in divorce settlements in an easy to understand manner.

Property Division In Divorce: Why Gold Bullion Matters In Divorce

Gold bullion, or gold bars or coins that have been valued not based on numismatic features, but rather on their metallic value, is considered to be tangible high value property. Gold is tangible and movable unlike a stock or property, and so it is not like other assets that can be subdivided.

Divorcing couples also have much gold since it is a wealth storage that many people, especially investors, values. It could have been pre-maritally or maritally purchased or given as a gift or purchased as an investment. These facts influence the way it is calculated in the division of property.

The Basics Of Property Division In Divorce

Most jurisdictions seek to divide marital assets equally, although in a fair manner, as divorce property settlements. The courts will take into consideration a number of factors: 

• The time and method of acquisition of the asset.  
• The length of the marriage.
• The economic situation of each side of the divorce.  
• The nature of asset being marital or separate property.

This analysis treats gold bullion as any other important asset.

Is The Gold Bullion Marital Property Or Separate Property?

Among the initial queries to be asked during the division of assets is whether the gold is referred to as marital property (shared with the owner) or separate property (retained by the owner). This is limited to the source and handling of the gold:

• Gold acquired during marriage: Generally marital property, is subjected to division.  
• Gold before marriage: Could be personal, particularly when in personal possession.  
• Gold as a gift or an inheritance: Generally treated as separate property, although could be marital property when mixed (e.g. kept together with marital property or used to purchase joint property).  
• Gold bullion purchased using marriage funds: Mostly marriage property.  
• Gold Given or sold in marriage or separation: Can be difficult to value and divide.

It is essential that documentation is made to establish the way and time of acquisition of the gold.

How Is Gold Bullion Valued For Divorce?

The price of gold depends on the market value of gold just as it changes day to day. In order to share it equally you will require a proper valuation near the time of divorce between you and your legal representatives. The bullion can be weighed by certified appraisers or dealers and verify purity.

Valuation also considers:

• The spot gold price per ounce  
• The weight and purity of the bars or coins.  
• Any form, storage, or liquidity premiums or discounts.

This is facilitated by keeping a clear record of the purchase receipts, appraisals, and storage.

Practical Ways To Divide Gold Bullion In Divorce

Having already determined that gold bullion belongs to the marital property, one can chose among the following possibilities to divide it:

1. Physical Division

When the bullion is in form of several bars or coins, couples can literally divide it. Considering an example where gold bars of the same weight and purity are ten in number, both parties may take five equal gold bars.

2. Monetary Compensation

In case it is not possible or desirable to physically divide the gold, one of the spouses can retain the gold and replace it with similar amount of money. This may be pegged on a new estimation of the value of the gold in the market.

3. Sell And Split Proceeds

In some cases, it is the easiest to sell the gold bullion and split the cash proceeds. This would save logistical problems particularly when the bullion is not easily divisible or when parties would choose liquid assets.

4. Offset With Other Assets

The price of the gold bullion can be used in a comprehensive settlement to balance out other assets. As an example, one party may retain the gold, and the other a property or a retirement account of equal valuables.

How To Manage The Gold Bullion During Divorce.

• Consider professional appraisal: To prevent a value wrangle, have your gold bullion independently and certified appraised.  
• Keep good records: You should have records and appraisals of purchases to demonstrate the date of purchase and ownership.  
• Keep at hand: Keep gold secure in a mutual safe place till it is divided. Unilateral acts such as selling without consent should be avoided.  
• Hire a lawyer: Laws on divorce are different in various jurisdictions, and therefore, hiring an attorney in family law will assist you in handling details and saves your interests.  
• Share information: Open communication of precious commodities such as gold bullion can prevent a lot of fighting and deliver more moderate results.

Beyond Division: Considerations For Post-Divorce Gold Ownership

In case of divorce of those who have the gold bullion it is always good to consider future strategy. Gold is an archetypal inflation and economic hedge, and it is considered a long-term investment by many.

In case of interest in expansion or control of gold deposits, it can be beneficial to learn more about  investing in gold. Regardless of the fact that the purchase was made in the form of bars, coins, or exchange-traded funds, making informed choices would still be the main factor for the assets to grow in value and consider security to be one of their characteristics.

Conclusion

The point of gold for divorce property settlements is quite complex but valuable for the investors. The knowledge of its classification, valuation, and division will provide insight to the divorcing couples and a better opportunity to arrive at an equitable decision. Documentation, professional appraisals, and legal advice make the process clear, which minimizes stress and disagreements.

In case you or a close person are going through divorce and you have substantial gold bullion, making considered actions at an early stage will save your investment and deliver a possible resolution. Have you ever or someone you know ever had to divide precious metals in a divorce? Write your ideas or comments below- discuss with us!