Art
Billionaire Divorce Battle Hobbled By Art Collection

The story throws light on how big art collections can be caught up in the emotional and legal battles around divorce.
Real estate developer Harry Macklowe and his estranged wife’s art
collection, worth almost $1.0 billion, has been a major debating
point in their split, throwing a light on how such possessions
are affected by divorce law.
A report by the New York Times and other outlets noted
how Macklowe, 81, and his ex-wife, Linda, finalised their divorce
late in 2018 after 59 years of marriage. One hurdle to surmount
is how they split their collection of more than 150 pieces by
artists including Mark Rothko, Pablo Picasso and Jeff Koons.
David Redden, former vice chairman of Sotheby’s, the auctioneers,
was quoted saying: "The art world will be fighting over it.” He
called the collection "fairly staggering" and "one of the great
prizes”.
Macklowe is reportedly worth almost $2.5 billion. His former wife
is an avid art collector and an honorary trustee at the
Metropolitan Museum of Art.
The business of handling and investing in fine art is one that
has drawn attention from wealth managers and private banks who
realise this area is an important, and not-so-small “niche”. Art
raises various issues around ownership, transfer, provenance and
storage. In recent years jurisdictions such as the European Union
have also tightened anti-money laundering rules to prevent abuses
in the art market. In May this year Citi Private Bank said it was
partnering with Sotheby’s, focusing more attention on how the
bank works with art investors and collectors as part of its value
offering. (See an interview this news service recently carried
out with a new art advisory business linked to the wealth manager
Hottinger.)
Art advisory support can deepen client loyalty and help wealth
advisors learn more about how their clients think. And the sums
involved are large. The recent
Art Basel and UBS report on the total art market gives a
global figure of $67 billion for the sector.