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In another true testament to the value of our beloved luxury handbags, the Daily Mail reports on divorcing couples arguing over Hermès bags. This ‘handbag divorce’ it’s not just a matter of who should keep the items. There are questions about the value and whether and how it should be accounted for when splitting assets. Is cash really tight if you can afford that Birkin? And was the Kelly actually a gift?
According to divorce lawyer Alison Fernandes, quoted in the article:
‘Husbands and wives have insisted that amounts spent on designer handbags, shoes or watches should be factored into how their joint finances are divided.’
Apparently the perceived spike in the value of luxury goods, particularly during the COVID-19 crisis, made everyone aware that these items are not just coveted but also hold financial worth. Indeed, as we have written before, Hermès handbags increased 17% in value during 2020. Furthermore, considering luxury bags as assets or investments is a growing trend. Several years ago, the Knight Frank Luxury Investment Index added these bags as specific investment category. This follows the establishment of handbag auctions by heritage companies like Sotheby’s and Christies which recognized the value and collectibility of these items, much like art and antiquities. .
When you think about it, very few investments show this kind of appreciation annually, let alone during a pandemic. However, this information is based on prices in the secondary market, not Hermès retail prices. It does not necessarily reflect what we as individuals would garner should we liquidate the collections. It certainly would be interesting to see how the courts factor in this data.
What are your thoughts on handbag divorce? Should luxury bags be part of a divorce asset allocation? Are they “to have and to hold” until the court rips them from our arms LOL?
Updated: June 26th, 2021
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