Harry Macklowe is a renowned New York City real estate investor with a multi-billion dollar net worth.
Syracuse, NY -- (ReleaseWire) -- 12/27/2019 --After 50 years of marriage, Harry and his wife Linda filed for divorce in 2016. Since then, the proceedings have dragged on—at times getting ugly. Now, The New York Times, reports that Mr. Macklowe and his ex-wife Linda are set to resolve their divorce dispute by liquidating one of the world's most valuable art collections.
New York is an Equitable Distribution State
Under New York law, the Macklowes' marital estate is subject to equitable distribution—meaning both partners are entitled to receive their fair share of the marital assets and property. One of the primary issues that this high net worth couple ran into asks: how should an art collection be dealt with that is worth nearly $1 billion?
Complex Assets are Difficult to Value and Divide
Dividing the proceeds of a bank account or an investment account may not be especially complicated—at least once it is determined who is going to get what. However, complex assets, such as art and real estate holdings, can be extremely difficult to value and divide in divorce proceedings.
As explained by Syracuse, NY divorce lawyer Richard J. Bombardo, "Dividing a valuable art collection is never easy. Not only are the pieces often difficult to put a precise dollar figure on, but they are also illiquid and each individual piece may derive some of its value from being included in an entire collection. In some cases, divorcing couples end up selling off their art to reach a resolution."
The Couple's Art Collection Will Be Sold Off
After nearly three years of dispute, reports indicate that Harry and Linda Macklowe will be forced to sell off much of their art collection in an effort to settle their divorce case. The divorcing couple is reportedly set to appoint a famed art dealer as the receiver for their impressive collection.
In doing so, they are planning to liquidate between $700 million and $1 billion worth of total art holdings. While divorcing couples certainly do not need to liquidate art—or any other property or assets—in order to finalize their separation, liquidation of assets may eventually be necessary. In fact, a New York state judge may even order a liquidation of assets if no divorce settlement can be reached.