Who gets the whisky collection when a marriage is over?
Assets that sit outside the traditional categories can throw up interesting questions during a separation, says Amanda Masson
What happens to people’s whisky collection when a marriage ends? It may sound like an unusual question for a family lawyer, but increasingly, the assets that sit outside the traditional categories of the family home, savings, pensions and investments can raise some of the most interesting – and potentially valuable – questions during a separation.
A few years ago, I acted in a case where a former distillery warehouse became central to the division of matrimonial property. What might once have been viewed simply as an old industrial building had significant development potential, substantially increasing its value.
Our client had acquired the site with an ambitious vision: to transform it into a destination venue for corporate events and visitors. It was an entrepreneurial project with the potential to create something of considerable value from an existing asset.
The case stayed with me because it highlighted something that is easy to overlook when considering the financial consequences of a relationship ending. Value is not always where we expect to find it.
For many couples, the financial picture at separation appears relatively straightforward. There is a house to value, pensions to consider, savings and investments to identify. But what about the bottle of whisky that has been sitting in a cabinet for 20 years? The collection accumulated over a lifetime?
These assets can become much more than sentimental possessions when their financial value is taken into account.
Whisky is a particularly fascinating example because it occupies an unusual space between passion, provenance and investment. A bottle bought years ago for enjoyment may now be worth hundreds or even thousands of pounds.
Under the Family Law (Scotland) Act 1985, one of the starting points is determining whether an asset constitutes ‘matrimonial property’. Broadly, this covers property acquired during the marriage by either spouse, although there are important exceptions, including certain gifts and inheritances from third parties.
That distinction can matter when it comes to whisky.
As wealth becomes increasingly diverse, family lawyers are encountering assets that do not fit neatly into traditional categories. Businesses, land, development opportunities, valuable collections and entrepreneurial ventures can all carry significant – and sometimes unexpected – value.
Where there is scope for agreement, mediation and other forms of alternative dispute resolution can offer a more constructive way of dealing with disagreements over ownership and value. Where agreement cannot be reached, litigation may ultimately be required.
But whether a dispute concerns a collection of rare whisky, a former distillery, a family business or a piece of land with unrealised potential, the underlying principle is the same: before an asset can be divided fairly, its true value needs to be understood.
Perhaps that is what makes whisky such an interesting lens through which to view family law. It reminds us that wealth does not always look like wealth.
Sometimes it is sitting quietly in a drinks cabinet. Sometimes it is hidden in the potential of an old building. Sometimes it is a business that began as an idea and grew over decades.
And when a relationship ends, those seemingly ordinary possessions, ambitions and investments can suddenly take on a very different significance.
Amanda Masson is a Partner and Head of Family Law at Wright, Johnston & Mackenzie LLP (WJM)