Protecting Your Classic Cars with a Prenuptial Agreement

In the world of high-end, rare and collectible cars, owners can be fiercely protective of their prized assets. On some level, they are right to be. Whether it’s a Ford Model T, a vintage Ferrari, or a classic Porsche, collectible cars have a unique way of appealing to collectors because of their limited availability, historical importance and significant value. Rare vehicles may be rare as a result of the number produced – either very few were made by the manufacturer or they simply are no longer in circulation due to age and other factors. These vehicles can be assets worth hundreds of thousands (sometimes millions) of dollars.

Due to this level of value, classic car collectors and owners, especially those in Georgia and throughout the United States, are recognizing the benefit of protecting their assets before they get married.

What Is a Prenuptial Agreement?

One solution that a growing number of classic car owners are pursuing to protect their passionate investment is a comprehensive prenuptial agreement in Georgia, or prenup. In the state of Georgia, a prenuptial agreement is a legal contract between two future spouses. This type of contract can cover all manner of things, from financial matters to property distribution, legal rights, and even estate planning. Depending on what the future comes to hold for the couple, some of these matters will be important.

Why Are Classic Cars Important to Protect?

For rare vehicles, you may find that your collection is among many things you possess that, when married, could be considered part of your marital assets. This means that your spouse has an equal claim on them, and if you happen to divorce, your spouse may be entitled to half of everything, potentially including your car collection.

Financially, most classic car owners understand the value of each vehicle they possess. Therefore, it is wise to protect yourself from losing that investment if the unthinkable happens and you and your partner split up.

How Can a Prenuptial Agreement Legally Protect Technical Assets Like Classic Cars?

Some instances in which a vehicle is not being used, whether it is being stored in a garage or being driven only on weekends, it can be treated as a technical asset. This means that a vehicle that is in storage can be treated like money or stocks, to be divided appropriately by each party in the event of a divorce. The same can be said for art and other types of collectibles, like coins or stamps. For the record, it is not always an easy legal process to treat your car collection as an asset. While doing so, it is important to note the fair market value of your collection, so it can be divided accordingly in the event of a divorce.

Divorce Is Not the Only Time a Prenup Can Be Useful for Car Collectors

Some couples may not feel comfortable discussing a prenuptial agreement as their wedding day approaches, and that is understandable. While they may be well-meaning, they are foolish to assume that they will never get divorced, or that their spouse will be reasonable about the division of assets if they do.

When it comes to vehicles, the language used in a prenuptial agreement should be as specific as possible. Specificity can even be used when discussing the vehicles in your collection, such as “a silver 1963 Porsche 911 in pristine condition, VIN # R230102” as opposed to “classic 911.”

A prenuptial agreement in Georgia can offer a blanket protective measure over your collection, or can be specific to a few vehicles. It comes down to what the parties agree to.

The Process of Creating a Prenup As A Vehicle Collector

Overall, creating a prenuptial agreement in Georgia is a very straightforward process. No specific format or language is useful – as long as the agreement covers any property bought during the marriage, then the unified signatures of both parties signifies agreement of the contract. The best way to go about protecting your valuable assets is working with a prenup attorney.

If you are considering a prenuptial agreement, there are some things you should keep in mind. Here are some tips to keep in mind as you talk about the topic with your partner: For high-value collectible car owners, a prenuptial agreement in Georgia (or any other state) can be the right choice. It does not require that you and your partner think your marriage will fail simply to discuss, it offers peace of mind to both parties that their passions will not unexpectedly be taken away from them in the event of a split.