According to one survey, about 30% of the entire US population owns some kind of luxury vehicle. This represents a post-pandemic surge, and it challenges the notion that only the ultra-rich can afford these vehicles. In truth, many Americans acquire luxury vehicles even if this does not represent a financially responsible choice. “Car culture” is huge in the United States, and many people see vehicles as status symbols. If the 30% statistic is true, then many divorcing spouses will have to address these luxury vehicles.
Popular DJ Takes Fleet of Luxury Vehicles in Divorce
Although lower-income individuals often purchase luxury vehicles, the ultra-rich are far more likely to acquire entire fleets of these automobiles. This was the case with a popular American DJ who recently finalized his divorce in California. He is described as an influential figure who created some of the catchiest sounds in the modern hip-hop genre. Aside from being a producer, he is also a record executive.
The full fleet is quite considerable. It includes several Lamborghinis, a Maybach, and a Rolls-Royce. Another notable addition is a 1960 Chevy Impala. Many other vehicles make up the collection, including several motorcycles. This collection could be worth millions of dollars, and it likely has sentimental value for the music producer. In addition, the DJ is walking away with several properties throughout California. He is also keeping the rights to his entire music catalog.
In contrast, his ex-wife retains ownership of a sleepwear company she founded during the marriage and a single Tesla Model X. One should note that Teslas technically qualify as “luxury vehicles” under most definitions. The rising popularity of Teslas helps explain the rapid increase in luxury vehicle ownership throughout the United States.
The ex-wife is set to receive almost $25,000 in child support each month and a lump-sum alimony payment of $315,000. In addition, she will receive a one-time “equalization payment” of $275,000 to address the unequal division of real estate and vehicles. The divorce was plagued by wild accusations, and the ex-wife alleged that the DJ “faked having cancer” at one point to keep her from leaving the marital home.
Potential Challenges of Dividing Luxury Vehicles During Divorce
The division of luxury vehicles could pose various challenges during divorce. Perhaps the most obvious issue is determining the value of certain vehicles. Older vehicles may have particularly elusive values, and some are worth far more than even the newest luxury automobiles today. For example, the DJ’s 1960 Chevy Impala may be one of the most valuable cars in his collection – despite its age.
One must also consider the various versions of these vehicles. There were various “editions” of 1960 Chevy Impalas, and some may be much more valuable than others. Some are worth over $100,000 today – particularly the two-door convertible versions.
According to certain analysts, classic cars have the potential to outperform the stock market over many decades. This raises another challenge for spouses, and the accumulated value during marriage may become marital/community property – even if the underlying asset is separate.