Coin Collections: How Do They Figure in Australia’s Divorce Court?
In Perth, WA, the Burra-Robinson Family Lawyers (https://www.brfamilylaw.com.au/) are reputed for having reliable expertise in giving valuable guidance on divorce matters. In Western Australia (WA), it’s important that separating couples have competent representation and comprehensive support in a divorce court; The country’s family laws want lawyers to avoid costly and unreasonably prolonged divorce proceedings.
As an example, the division of coin collections could take long to settle if there is no Binding Financial Agreement (BFA) in place; or if there’ is ambiguity and lack of comprehensibility on the division of the collection. Generally, judges in other countries simplify matters by ruling a 50-50 division between the separating spouses.
Not unless there is a prenuptial agreement or BFA. Yet in Australia, if multiple coin collections were built during marriage using the commingled funds of the couple, the valuation and division of every coin collection must be clearly established. This is because the provisions of Australia’s Family Law Act 1975 and 1997 aim to ensure clarity of asset protection and division. That is regardless of whether the separating couple is legally married or is in a de facto relationship.
Growing one’s collection of coins and levelling up to collecting as a form of investment during marriage makes the assembly of various coins a part of the marriage assets. Also, the coin acquisitions during marriage, to build new types of collection, gives the collector’s spouse the right to claim equitable share over the entire value of the coins.
Understanding the Essence of Coin Collection
Coin collecting as a hobby involves building an assembly of various coins based on specific themes. Examples of themes may include:
- Different years minted by the US Treasury;
- Type of metal used in minting the coin (silver,gold or platinum);
- Coins circulating in different countries in which the collector travelled during his or her lifetime.
Yet collecting coins as a hobby can level up as a type of investment to diversify one’s portfolio, such as building a collection of rare coins. Some examples are Roman Coins, which can be further subclassified as silver or gold coins minted during the rule of the 12 Caesars, from Julius Caesar to Domitian. Other examples are assemblages of silver, gold and platinum US Eagle coins.
Investing in rare coins is regarded as a sound venture because unlike crypto currencies, special and rare coins are tangible assets with price indices that remain stable for a long time. Moreover, they have great potentials to appreciate in values. Serious investors regard them as sound investments because the stability of their price is a good constraint against the effects of inflation.
Tangible Collectibles – Investing In Rare Coins
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Investing In Tangible Collectibles
Making investments is the way you take charge and control of your financial security. Not only will investing allow you to cultivate and multiply your wealth, but generate an added stream of income if and when needed before retirement. There are numerous options to making an investment like forex, stocks, bonds, or real estate. Regardless of the option you choose, provided that it is done well, investing will provide growth for your wealth and assets, and/or income.
Tangible collectibles as a form of investment could be an excellent way to have a diversified portfolio as well as reduce risk. In connection to investing in collectibles, the general principle is to make an investment in something that you love. This way, if the collection you have doesn’t yield an ROI, you still get to enjoy and take pleasure in the collection that you were able to amass.
Investing In Rare Coins
Rare coins are deemed to be an investment that is like a commodity wherein sentimental value may be present. But, since they are tangible asset investments, rare coins could also generate appealing financial returns.
Collecting rare coins is actually popular. Many people collect them for the same reason why they collect art. As an investment, rare coins have an extremely high potential for resale, especially when investors are able to make the right purchase at the right cost.
If you would want to start growing your rare coins collection, there are a few things you need to know to make this undertaking a bit easier and less daunting, particularly for beginners. Here are a few advice provided by expert and seasoned rare coins collectors:
- SPECIALIZE: Your rare coins collection doesn’t necessarily need to be huge since a small collection can still be very valuable. If you decide to start your rare coins collection, it is best to specialize. Focus on a particular denomination, time period, or theme. This way, you know what to look for to add to your collection.
- INSPECT AND EXAMINE: When you have determined what rare coins to specialize on, make certain you inspect and examine the coins to ensure they would perfectly match and fit into the collection you are building.
- RESEARCH AND STUDY: Don’t limit yourself with the advice or opinions of sellers. As a collector, it is imperative that you make your own research and study on the rarity, denominations, values, and other aspects you need to know about the coins you are collecting so that you become an expert yourself.
- START OFF SMALL: If you are still starting with your rare coins collection, it is advised that you start off small. Additionally, when purchasing rare coins or minted coins, it is ideal to buy those with historical significance. Even if you have the funds, you shouldn’t be spending hefty amounts on coins that you know nothing of or don’t understand.
How to Have Proper Insurance Coverage for a Coin Collection
Not a few have become interested in coin collecting as a hobby, especially if in being a numismatist, they manage to find a coin that’s worth a million dollars. However, when it comes to obtaining insurance for a coin collection, the matter requires extensive discussions.
Why Old Coins are Valuable?
Actually, numismatics refers not only to the practice of collecting old or unique coins, like the commemorative money or coins of which only a few were minted and released for circulation. Numismatics in a broader sense is about the study of money and their occurrence in older societies as medium of payment, to either purchase a piece of good or chattel, or to settle a debt. Often called “Odd and Curios” not all goods or objects used as the principal medium of payment in the olden days, are subjects of numismatic study.
An example provided by one numismatics resource is that of the barter trade among Kyrgyz people, a Turkic ethnic group primarily of Kyrgyzstan. When a horse was used as primary medium in a barter exchange, but to which a change or excess value will be given to the person who paid with a horse, such change will have an equivalent value in lambskin. Numismatists engage in the study of the lambskin as a form of money and not the horse even if it’s the principal medium of a barter trade.
Now here’s the thing, some numismatists also engage in determining the value of a coin. However, like any other commodity, the supply and demand for collectible coin items can drive the value by which a collectible coin is quoted in the market. That is why a very rare coin, if it is the only one in existence across all countries, can command as much as $1 million.
The Matter of Getting Insurance for a Coin Collection
Inasmuch as a rare coin forming part of a coin collection has potential of becoming very valuable, it would be wise to obtain insurance coverage for the entire lot. However, the cost of insuring a coin collection that is kept in the collector’s place of residence would be higher than it would, if the coin collection is safekept in a safety deposit box of a bank.
Moreover, a homeowner’s insurance or a condominium unit insurance might not give the proper estimate in covering the value of the coin collection. There have been cases in which a coin collection was among the items carted away by thieves, which upon resolution of insurance claims, turned out to have been valued in the policy at only $200.
In researching how to obtain the best insurance coverage for my own coin collection because I live in a condominium unit, I asked assistance from one of the providers of condo insurance near me. That’s where I learned that the Condominium Association policy does not cover the contents inside my unit but only the common areas shared by all condo owners of the building.
Even more important is that I learned that in order to get the right insurance coverage for my coin collection, my condo insurance policy must include a “rider” that contains a listing of all items included in my coin collection, including their current market values. That “rider” which is also called an endorsement, will extend the coverage limit for my coin collection. Still, this is a matter that must be thoroughly discussed with your insurance provider because adding a rider to your policy, will increase the cost of your monthly insurance premium.