What Happens to My Wine Collection During a Divorce?

Unfortunately, divorce is one of the situations that frequently requires professional appraisal to help with the equitable division of assets, including wine and spirits.

But this situation is compounded by the fact that many wine and spirits collections were amassed over years, with care and emotion, and some bottles may have been tied to experiences during happier times, bringing up complications or uncomfortable memories.

Generally, wine/spirits collecting tends to have been a pursuit for one partner more than another, which can also create an awkward situation. In the best of circumstances, amicable separation will lead to a unified approach to valuation in an effort to be fair towards both parties. At other times, there are some potential difficulties to be aware of.

Why wine collections become an issue in divorce

Wine is not always regarded as a valuable personal asset, as it is usually not collected solely for investment. Bottles for everyday drinking may be interspersed with highly collectible ones. Wine and spirits collections may have been built over decades, a bottle here, a case there, and complete records of provenance might not exist. Frequently, a complete inventory has never been made. Certain items may have been “forgotten about” over time. Pristine storage may not have been consistent, and so on.

This leads to the common situation of a disagreement over value. Often, one party believes the collection is worth far more than it is—and the other, far less.

At the end of the day, courts typically need a defensible valuation. This means not just a googled opinion of what those wines are selling for in the shop around the corner. The valuation needs to be informed, logical, and supportable. With wine and spirits, there is no singular value that is absolutely “correct,” at every time, so having an experienced appraiser on your side is key.

A credentialed and skilled wine and spirits appraiser understands the nuances of valuation. They can interpret the data from various auction houses and merchants, knowing which comparable sales to focus on and the ones that are not worth including, and why. They are well-versed in how a bottle’s condition, provenance, and especially storage matter to the value of the wine. And they are ethically bound to not inflate or reduce an opinion of value in favor of any particular party.

Challenges unique to wine and spirits, and how a professional appraisal helps

Wines and spirits carry distinctive challenges versus other collectible assets. Here, one spouse may know far more about the collection, leading to unbalanced familiarity and expectations of value. Records and inventories are commonly missing, so occasionally, there is the concern that one party may squirrel away top bottles prior to a divorce notification to remove them from consideration.

Collections often contain mixed levels of investment-grade items and bottles for everyday consumption. Some may be personal gifts. Others may be earmarked for children’s inheritance.

Some wines may have been stored improperly or suffered a compromising issue. During the period of proceedings, bottles may have been consumed. All of these elements become less contentious when a professional is involved.

An appraiser delivers an independent third-party opinion. They will provide documentation that can stand up to scrutiny, like a detailed, correct inventory, and an appraisal citing appropriate comparables. This can lead to reduced conflict between parties and easier division, buyout, or sale of assets.

How this all works

If a current, thorough bottle-by-bottle inventory does not exist, we will come on site and create one. If there is any question of (or evidence supporting) compromised storage, we will select and taste a few bottles for condition—alongside both parties and any designated representatives, if desired. If there is any concern of inauthenticity, we can examine suspicious bottles.

We then create an inventory file, and subsequently research and designate an opinion of value for each of the line items, as of the date of divorce, the date of inventory, or any other mutually agreed time. In certain contentious cases, we can also provide more detailed commentary on selected comparables and any adjustments. We will provide a report including the appraisal to all necessary parties.

If a sale is agreed upon, we can secure a few offers appropriate to the size and makeup of the collection, and assist with any packing and shipping needs. Should a division of the collection be desired, we can help with separating bottles out fairly.

Our initial consultation is always free. Kindly fill out our introduction form HERE so we can better understand your needs. Especially important is: if a current inventory exists or will need to be created; approximate size and makeup of the collection (i.e. Bordeaux, Italian – and full cases vs. single/double bottle quantities); where and how is the collection stored; do purchase/provenance records exist for top bottles.

We understand this may be a difficult, emotional time, and will work with you to navigate the situation as professionally and efficiently as possible. As always, we are available to answer any questions you may have.