Ever come across the word “chattel” during the division of property or assets? Gave a thought to what the term “chattel” actually means. Well, if not, no worries; this article will help you understand things in detail. This article explains what a “chattel” is. And how are they divided among the individuals in divorce cases or cases of death of the possessor?
This article also provides you with a brief idea about what valuation is, such as jewellery valuation or any asset valuation. Why is it done— or why is it important for everyone to get it done? But before we understand these things, let’s understand first what a “chattel” actually means.
What are Chattels?
The term “chattel” refers to movable personal possessions. This can include furniture, antiques, artwork, cars, and jewellery. They are just like real property, but the only difference is that assets like land or mansions cannot be taken from place to place, while those that come under the category of chattel, can be taken from one place to the other. These are equally valuable, just like any other immovable asset (at times they also hold sentimental value) and therefore become the point of argument during the division of assets.
In the United Kingdom, the division of personal property during cases such as the death of a person or during divorce considers various factors. The courts attempt to divide assets based on both legal principles and practical considerations. In such cases, when the valuation of the chattels, such as jewellery, is already done by good jewellery valuers, such as Prestige Valuations, the process becomes quite smooth and easy.
By now you might have a rough idea about what chattels are. In the following paragraphs, we will delve deeper into understanding the distribution of chattels in cases of divorce and death.
Chattels in Divorce Cases
When two individuals, due to various factors, are unable to adjust to each other, most often the situation calls for separation. However, separation after marriage is not as simple as it seems. Several things will be divided between the two individuals, including the house they were living in and the assets (movable and immovable). Courts here come to act as the dispute resolvers, and just like any other court in the world, the courts in England and Wales typically aim for a fair division of assets. Precious assets such as jewellery in a divorce settlement hold both monetary and emotional value; therefore, when the valuations are done beforehand, it becomes easy for the courts to settle the case.
Chattels in Cases of Death
In case of the sudden death of a person, the assets of the person are divided according to the will left by him or her, called the probate. In the absence of a will, assets are divided equally based on their value and the beneficiaries. The court can either order a probate jewellery valuation or auction the assets to determine their value and divide the proceeds between the parties. Incorrect valuations could lead to complications with HM Revenue & Customs (HMRC), which may delay the probate process or inflict financial penalties.
Why is Chattel Valuation Important?
Well, there can be several reasons why the valuation of chattel like jewellery or antiques is important. In case of divorce and death, the matter becomes complicated, and, in such cases, when you already have the valuations done, it helps in the smooth progression of the case. A few important reasons why the valuation is important are listed below.
- Accurate Division: The valuation tells the actual worth of any item, and therefore, in case of death or divorce, having the actual valuation helps in the fair distribution of the assets.
- Inheritance Tax: Under UK law, when there are assets or estates above a certain threshold, they attract taxes. When the valuation is done beforehand, they provide the members with the total price of the items, which helps in the easy calculation of the taxes that are owed to HMRC.
- Preventing Disputes: In both divorce and probate cases, it may not always be about the price of the items; at times these chattels carry emotional value too, and therefore it becomes difficult to decide who should be the owner of the item. Valuations provide the actual worth of the items, which thereby helps in the fair distribution of the items without involving the emotional value that the asset may have.
Summing Up
To sum up, there are various benefits of getting the valuations done. In case of death or divorce, it becomes even more important to have the exact value of the assets that are to be divided among the individuals. When the valuations are done beforehand, they provide the actual worth of the items and therefore ensure that the fair distribution of the assets takes place without any delay.
