What happens when two people want the same item? This is often an issue that arises during separation or divorce. While chattels may not always have the same financial value as houses, pensions, or financial investments, their sentimental or monetary value can significantly impact divorce negotiations and settlement.
What is a chattel?
A chattel is defined as a tangible, movable item of personal property that is not classified as a financial asset, or real estate. They are basically personal possessions and household contents owned by one or both parties.
Chattels can range from everyday household items to expensive luxury goods. In divorce proceedings, items with a value of £500 or higher are typically required to be listed in the Form E – Financial Statement during financial disclosure.
Examples include:
- Furniture such as sofas, chairs, and tables.
- Appliances like fridges, washing machines, and microwaves.
- Vehicles including cars, motorcycles, and mobile homes.
- Valuables such as artwork, paintings, antiques, watches, and jewellery.
- Wine collections.
- Personalised number plates.
- Record collections.
- Clothes, handbags, and personal items.
- Pets.
Why do people argue about chattels?
Disputes often arise due to the following reasons:
- Some items, such as antiques or valuable artwork, can have substantial monetary value.
- Differing perceptions of value.
- A strong sentimental connection to a specific item.
- Misunderstandings as to ownership.
- One party feeling entitled to a certain item due to a personal contribution or endeavour.
- In some cases, arguing over chattels is a way to annoy, control or seek revenge against the other partner.
- As a bargaining tool during financial negotiations.
How are chattels divided in divorce?
If a couple cannot reach agreement over personal items either between themselves or using a form of non-court dispute resolution, a Judge will have to determine the dispute. Courts are not interested in sentimental attachment and most Judges will not spend a significant amount of court time on addressing the issue of personal belongings and will instead simply adopt a broad-brush approach and divide items in whatever manner they choose.
In dividing items Courts distinguish between matrimonial items and non-matrimonial items. This distinction can affect how items are divided.
Generally, the division of items will form part of a party’s needs, and any assets that exceed a party’s needs may be sold, with proceeds shared between parties.
How are chattels valued?
The accurate valuation of disputed items is crucial for a fair division. If agreement cannot be reached as to the value of an item, several methods can be employed:
For high-value items like artwork, jewellery, watches, vehicles, or antiques, getting a professional appraisal can help determine fair value.
Alternatively, a court can order a Scott Schedule which comprises of a complete list of disputed items with values assigned by each party, which can be presented to a Judge for decision. A Scott Schedule will also usually include explanatory notes within the schedule to clarify why a particular item is sought by a specific party.
What are matrimonial items?
These are any items acquired by the couple jointly or individually during the course of their relationship likely using matrimonial funds. It can include items acquired whilst living together before marriage, and brought into the marriage.
Matrimonial items can include things like cars, antiques, jewellery, art, collections, and anything of value.
What are non-matrimonial items?
Non-matrimonial items can include:
- Items purchased in one spouse’s sole name before marriage, and kept entirely separate from the marriage.
- Items specified as separate property in a Prenuptial Agreement entered into by the parties.
- An inheritance received by one spouse.
- Gifts given to one spouse by family or friends.
- Items acquired after separation.
Is a car a matrimonial item?
A car is typically considered a chattel if it was purchased during the marriage, regardless of whose name the vehicle is registered to.
When determining how to handle a car in a divorce, factors such as the car’s value, any outstanding loans or finance commitments, and each spouse’s future needs will be considered.
A car might not be considered a matrimonial item in the following situations:
- If it was owned by one spouse before the marriage and kept separate from marital finances.
- If it was inherited or gifted to one spouse specifically during the marriage.
- If it was purchased after separation.
Is a pet a chattel?
Yes, under UK law, pets are considered chattels. This means they are legally treated as personal property, similar to furniture or other movable possessions. In divorce or separation cases, pets are subject to property laws rather than being treated as sentient beings with their own interests.
In divorce proceedings, pets can be subject to property adjustment orders.
For unmarried couples, pet ownership is determined by establishing who actually owns the pet.
Who owns a wedding gift on divorce?
Gifts from third parties such as family members or friends to a couple jointly are typically treated as matrimonial items and are taken into account when negotiating a financial settlement.
Cash gifts are usually treated as joint assets, unless there is clear evidence that the gift was intended for one person only.
How the gift has been used during the marriage may affect its division. For example, if a cash gift was deposited into a joint account or used to pay off a joint debt, it is likely to be treated as a matrimonial asset.
Is an engagement ring a gift?
In England and Wales an engagement ring is presumed to be an absolute gift that does not need to be returned if the engagement ends. Once given, the ring becomes the property of the recipient.
If the ring was given with an express condition that it must be returned if the marriage doesn’t take place, it may need to be returned. This applies in the case of family heirlooms.
To avoid any misunderstandings a couple should discuss their expectations regarding ownership of the ring at the time of engagement. Any agreement can be included in a Prenuptial Agreement.
When is a gift not a gift?
A gift is not a gift when there is a legal or contractual obligation to do something, or something is expected in return such as an interest in a property.
Similarly, if a condition is attached to the gift, it is likely not to be a gift if that condition is not met. For example, if a parent gives money to a couple to buy a property conditional upon their marriage; they may be entitled to ask for the money back if the marriage does not go ahead.