It is often said that art has no intrinsic value, only aesthetic value, but the truth is that most modern art collectors purchase pieces both for their long term value and inherent beauty. With the rise of art as a luxury fashion good, in addition to its being aesthetically pleasing, many art collectors and even casual admirers have made and lost fortunes by purchasing and selling art.
Why It Matters To You
The rise of modern art schools and public funding of brilliant artists has enabled more and more truly talented artists to emerge from all over the world, and even once small-time artists may produce works that later go on to be worth fortunes. As such, it is important for you to know the market value of your art in addition to its aesthetic value. This is because the presence of certain rare or valuable works of art may significantly distort your assets and thus be inadequately protected in the event of bankruptcy, litigation or other financial disaster.
What You Could Lose
All too often, family heirlooms or treasured works of art get swept up in divorces and liens because they are the only asset capable of paying off outstanding debts, and the owner finds out too late that it could have been used as security or collateral to prevent the indebtedness in the first place. Our legal specialists with Katz & Phillips law firm suggests that the values of divorce estates can change dramatically with appraisals of jointly owned art. Even a small piece by a relatively unknown artist may contain attributes that make the works extremely valuable, and certain exemplary or rare works will shoot up in value if the artist becomes famous, dies or ceases to produce pieces of that type.
How You Can Benefit
Additionally, once you know the financial value of your art, you can better make financial decisions with that art. As previously mentioned, high value works can be used as collateral when negotiating loans and other financial transactions. Many works can also be rented or loaned to respectable museums and other institutions in order to generate income while remaining in your possession. This can also help ensure that the works are protected, since museums generally have more resources at their disposal to prevent theft, vandalism and environmental damage. Loaning or even just lending your art pieces to public institutions can also generate local goodwill, qualify you for certain tax credits and benefits, or simply ensure your picture is properly displayed and cared for.
Knowing what your art is worth helps you to understand how carefully it needs to be managed, displayed or insured. It helps you to plan ahead for financial disaster so that you will not have it confiscated and sold in order to pay off debts or other financial obligations. It enables you to use the value of your art to pay for other expenses, increase your quality of life, or simply invest in more art. Even if you collect your art purely because you love to see it, the only way to properly insure and protect your art is to know its true financial value. Therefore you should get your art appraised at least once every five years.
Ann Bailey is an artist and former journalist, and is a contributing writer for the Orlando divorce attorneys of Katz & Phillips. This firm specializes in all aspects of divorce law, helping to ascertain estate values for their divorce clients and ensuring equitable outcomes where family property division becomes necessary.
 |
| Photo Credit |
Why It Matters To You
The rise of modern art schools and public funding of brilliant artists has enabled more and more truly talented artists to emerge from all over the world, and even once small-time artists may produce works that later go on to be worth fortunes. As such, it is important for you to know the market value of your art in addition to its aesthetic value. This is because the presence of certain rare or valuable works of art may significantly distort your assets and thus be inadequately protected in the event of bankruptcy, litigation or other financial disaster.
What You Could Lose
All too often, family heirlooms or treasured works of art get swept up in divorces and liens because they are the only asset capable of paying off outstanding debts, and the owner finds out too late that it could have been used as security or collateral to prevent the indebtedness in the first place. Our legal specialists with Katz & Phillips law firm suggests that the values of divorce estates can change dramatically with appraisals of jointly owned art. Even a small piece by a relatively unknown artist may contain attributes that make the works extremely valuable, and certain exemplary or rare works will shoot up in value if the artist becomes famous, dies or ceases to produce pieces of that type.
How You Can Benefit
Additionally, once you know the financial value of your art, you can better make financial decisions with that art. As previously mentioned, high value works can be used as collateral when negotiating loans and other financial transactions. Many works can also be rented or loaned to respectable museums and other institutions in order to generate income while remaining in your possession. This can also help ensure that the works are protected, since museums generally have more resources at their disposal to prevent theft, vandalism and environmental damage. Loaning or even just lending your art pieces to public institutions can also generate local goodwill, qualify you for certain tax credits and benefits, or simply ensure your picture is properly displayed and cared for.
Knowing what your art is worth helps you to understand how carefully it needs to be managed, displayed or insured. It helps you to plan ahead for financial disaster so that you will not have it confiscated and sold in order to pay off debts or other financial obligations. It enables you to use the value of your art to pay for other expenses, increase your quality of life, or simply invest in more art. Even if you collect your art purely because you love to see it, the only way to properly insure and protect your art is to know its true financial value. Therefore you should get your art appraised at least once every five years.
Ann Bailey is an artist and former journalist, and is a contributing writer for the Orlando divorce attorneys of Katz & Phillips. This firm specializes in all aspects of divorce law, helping to ascertain estate values for their divorce clients and ensuring equitable outcomes where family property division becomes necessary.
No comments:
Post a Comment