Modern Family Matters

Art, Wine, Guns & Timeshares: Divorce Assets You Won’t Believe

with Kelly Lise Murray

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A “high-value asset” is not the same thing as a “high-value check,” and that gap can wreck a divorce settlement. We sit down with Professor Kelly Lise Murray, a wealth dispute resolution educator and real estate collaboration divorce specialist, to unpack the assets that look impressive on a spreadsheet but become brutally complicated the moment you try to divide or sell them.

We talk through the real-world mechanics of divorce asset division when the property is unusual: art collections that have an insured value but no practical resale market, wine collections that can literally disappear bottle by bottle, firearms that raise eligibility and safety questions, and timeshares that can act like a negative asset once annual fees are considered. Along the way, we highlight why judges decide cases based on admissible evidence, why “only one side brought proof” can become the final number, and how the right experts and documentation can prevent costly post-divorce enforcement fights.

You’ll also hear how some courts get surprisingly practical with unique property, including creative approaches to splitting collections, plus what it means to negotiate for enforcement before mediation so you can actually receive what you bargained for. If you’re facing a high net worth divorce, equitable distribution questions, asset valuation disputes, or concerns about dissipation, this conversation will help you think more clearly and prepare more strategically.

Subscribe for more family law guidance, share this with someone sorting out property division, and leave a review if it helped. What’s the strangest or most emotionally charged asset you’ve seen people fight over?

If you would like to speak with one of our attorneys, please call our office at (503) 227-0200, or visit our website at https://www.pacificcascadelegal.com.

To learn more about how Kelly can help you, you can visit her website at: https://vettingthehouse.com/

Disclaimer: Nothing in this communication is intended to provide legal advice nor does it constitute a client-attorney relationship, therefore you should not interpret the contents as such.

Welcome And Guest Introduction

Intro/Outro

Welcome to Modern Family Matters, a podcast devoted to exploring family law topics that matter most to you, covering a wide range of legal, personal, and family law matters with expert analysis from skilled attorneys and professional guests. We hope that our podcast provides answers, clarity, and guidance towards a better tomorrow for you and your family. Here's your host, Steve Altitian.

Steve Altishin

Hi everyone, I'm Steve Altitian, Director of Clamp Partnership to Pacific Cascade Legal, and today we have real estate collaboration divorce specialist, Professor Kelly Lisa Murray, and she's going to talk about how unique and high-value assets can get complicated when divided in a divorce. Kelly, how are you doing today?

Kelly Lise Murray

I'm doing well. How are you, Steve?

Building The Right Divorce Team

Steve Altishin

Oh, I'm doing very well. It's our first day of rain in Oregon in like 20 days. So it's kind of an oddity. Well, good for you, apparently. You know, we're liking them. So, Kelly, before we start, can you just talk a little bit about yourself and how you came to be in the position and doing the stuff you're doing?

Kelly Lise Murray

So I'm an edupreneur now. I have degrees from Stanford University and Harvard Law School. I have an Illinois law license for over 30 years. I was a litigator, and then I was law faculty at Vanderbilt University for 18 years, retired recently, moved away from Nashville. And what was my side project as law faculty is now my main focus, and that is wealth dispute resolution. And I train judges and lawyers, I train financial professionals, I train mortgage and real estate professionals, and then I train, I educate the public on issues that affect mainly family disputes about wealth-related items like assets and money and all of that, because it's so important to get it right. What I have found through all the thousands of cases I have researched and spoken about for over 15 years, that there are patterns that can help people prevent mistakes, prevent post-litigation, litigation, you know, meaning a post-divorce action or even a trust contest or other probate disputes. We can prevent a lot of this with just planning, documentation, and making sure you have the right team in place. And from all of my research, you've got to start with the right lawyer who is the quarterback of the rest of your team. So if you have unique or high-value assets, you absolutely need to start that way.

Why Evidence Wins Asset Disputes

Steve Altishin

I love that. I love that. It's great advice just right there. Um we obviously do a lot of divorce here, and we've come to realize divorce is never a simple process. There's always something. And you know, the division of assets, I know, is sometimes one of the most challenging aspects. So I'm going to start with is what are some of the assets that are or can be particularly complicated, and kind of start talking about them and how to make them less complicated, but but what drives that complication of some of these assets?

Kelly Lise Murray

One would be unique assets. So something that you don't see all the time, and we're going to be talking today about timeshares. Steve, you raised that issue. And even though I I train real estate professionals and mortgage professionals to help folks in divorce, and that's the RCSD you mentioned at the top. I've been that training I started in 2008. So I'm training them how to help people going through a divorce and how to help lawyers with folks going through a divorce with those assets. I had not looked at timeshare. So timeshare is a unique asset in and of itself. And one of the issues is is it even real property? So I found that fascinating. So that's a uniqueness. And then you can have high value, but not an active resale market. So even though something has high value on paper in divorce, if it has to be sold, the actual value may not be what gets on the marital balance sheet. It may be the liquidation value. So those are just two of the patterns that have stood out in putting this together. But we're going to be looking at art and wine, valuable wine collections and firearms, which actually has a lot of case law, and then timeshare.

Steve Altishin

What seems to kind of connect all of these in my in my brain is that not only is it difficult for the clients, the people who are dividing, the attorneys, these are things that judges don't see every day. And that makes it harder because judges, as their job, they get used to certain things. And so it's much easier. They have less difficulty kind of working out the division of property. But one of these things come up, and so it's it's like almost having to train the attorney, it feels, or the judge, it feels like. Oh, absolutely.

Kelly Lise Murray

It it is because, and I have cases where it's not the judge's job to generate evidence. The judge can intervene and suggest things if the judge has separate knowledge of, you know, so let's say it's a timeshare and the judge happens to know timeshare law. But what I'm seeing in the cases when one side or both present zero evidence, it's not the judge's job to fix this. It's not the judge's job to save you from your own lack of evidence, your own bad evidence, or your own bad deal. So, what you want to do, if you are the one who wants this asset or wants this asset to be valued highly in the marital balance sheet, you have to do the due diligence. And again, your team is critical. You're going to need, so depending on the asset, what type of professional could value that asset? And what I'm seeing in the lit in the case law for all of these types of assets we're talking about today, if one spouse presents evidence and the other has none, where's the judge going to go? Well, this is the only evidence in the record. That looks pretty good. Because if there's nothing to rebut it, and that would be that would be affirmed on appeal because that standard is abuse of discretion. Well, the judge isn't abusing discretion if only one side presented evidence and it was admissible. So, what you want to do in preparing is if this is your issue and this matters to you, you need to take the lead. The other side's going to react to your evidence and they may come up with evidence. So I've seen cases where these valuable assets, no evidence or competing experts, use mine, no, use mine. And then the judge has to figure out who's more credible, what was their methodology, and that can happen with other assets. But you also want to see how did the other side hire an expert? So if it's their asset and they hired an expert, you may need to hire an expert. If it's their their issue, you know, if they want it and you don't really, that's not what you really want. You can just see what they're doing and just match their level of evidence. You don't have to, if they don't get an expert, you don't have to either. If if you can match it or you know, or if you don't mind their number. Because basically, if only if there's only one side presents evidence, that's probably gonna be the number.

Art Value Resale Versus Insurance

Steve Altishin

Oh, yeah. Uh it's it's uh it's like you say, there's there are these different things that have to happen. And what we're gonna talk about today, thing that first comes to my mind is don't do it by yourself. It's one of those situations where you don't have the legal knowledge, you don't have the persuasiveness, you don't maybe not even know how to get the knowledge. And and so when you said like you need a team, that that that's exactly correct. But let's talk about, and I really I was looking at some of your stuff, and it was just fascinating how art and art collections or antiques, those kinds of things can really get complicated fast.

Kelly Lise Murray

Absolutely. And it it comes art, especially because is it you know, do you have a renoir or do you have more modern art that still has a lot of value, but a different understanding of its value and it depends on the market. Can it be resold? Are you going to to an auction house or are you selling it locally? That will change the value, or you want to make sure. So, for example, if the insured value is $10,000, but it can't be sold for $10,000, you don't want $10,000 on the marital balance sheet. I call that monopoly money. You know, if you're the one awarded this asset and it's $10,000, which means you're giving up something, you know, let's say part of the pension to keep this art and you can't sell it for $10,000, you're shortchanging yourself. So that's why you need the team to help you get the documents, get the strategy together, and then look at the numbers because resale is everything. These assets aren't liquid. And if they're hard to sell, they're going to stay illiquid until you determine what where the market is. So, in so in art, we have found courts can get creative, but only based on valuation evidence. One side has to show the court this is gonna be difficult to sell, this is difficult to value. The courts are not gonna just make it up, but courts are getting creative and they're also very practical when they look at these cases.

Steve Altishin

You gotta wonder if the judge is watching Antiques Roadshow.

Kelly Lise Murray

You know what? That would help. I that outside knowledge would could definitely help folks or help the court suggest some evidence, uh some additional due diligence. Because each side has the obligation to identify and value assets and identify and quantify debts, and you can't just point fingers at the other side, so you won't have you won't have any leverage after divorce if you didn't do your part before.

Steve Altishin

Uh it also feels an art like the the emotional tie you have to a particular painting or collection is is really driving in a lot of cases their need to keep that, and maybe they're paying for it.

Kelly Lise Murray

Well, that there's a New York case where it was the wife's art collection and it wasn't famous, but it was valuable, and she presented evidence of its value. And because it was a marital asset, the she the husband had a marital interest, but it wasn't being divided 50-50. And so they set a number of 10% of her valuation. That wasn't resale, that was just like insured value, so that's higher than possible resale. He was owed 10%. She would have to liquidate 29% of her art collection just to give him 10% in cash. That that's an example of why you need your team to get the numbers on your marital balance sheet correct, because the value, you know, 10% cash, she had to liquidate 29%. So you don't want to just use the insured value. But it it suggested to me, and Steve, you and I have talked about this before. There's an opportunity, isn't there, to negotiate. If he is he's owed 10% in cash, but she has to liquidate 29%. Maybe there's some leverage to suggest he accepts some of it in painting, so he gets more than 10%, and she gives up less than 29%.

Creative Court Methods For Collections

Steve Altishin

What do you think? Yeah, I mean, it's funny because if there's two cars in the family or three cars in the family, usually, you know, the judge sort of boxes that off and says, okay, you get this car, you get that car, and then let's move on to something else. But art can, just by its very nature, I think, and its difficulty to evaluate and maybe sell, it's kind of harder to do that, but maybe it's a good idea. And you had talked about, and I want you to talk a little bit about this case that you that you had, where a judge got very, I don't know what to say, unique in how to decide the division of property in in an art issue.

Kelly Lise Murray

It it was, I find this, I'm a research nerd, I find this fascinating, and this this case delivers in the interest and the uniqueness and the creativity. This is a high net worth divorce in Ohio. And apparently there's a local rule in Ohio. So it wasn't just the judge creativity, the whole the whole court system there has a local rule that if you can't otherwise divide the asset, you have to flip a coin and pick one at a time. That's how they divide expensive and unique assets in this county in Ohio. And so this was, they had, they have assets in two in the United States, but also in France that had to be divided. The wine is in the United States and France, they had art in the United States and France, and it was all going to be done with a coin flip. So I certainly hope that there is some automation involved because you need you need to set up, it's it's almost like you need a merge document to say this is the what I want in my order, because what if the other person picks your number one first? You've got what do I want next? That could be very time consuming, especially if the lawyers are doing it. So hopefully there's some automation involved. It's like fantasy baseball. Absolutely. You're picking your fantasy team with really expensive items like art and wine and jewelry. But I just so I could see a judge coming up with that. There's a famous photograph that has been recirculating again. It's from the 1990s, and you can tell from the hairstyles and the clothing and the look of the courtroom that it's the early 1990s. And there's a pile on the floor of the courtroom of beanie babies, and the husband and the wife are both kneeling in front of this pile picking one beanie baby at a time because back then that was valuable. So this has been used before, and that that is a very famous internet meme that floats around every now and then.

Steve Altishin

Well, you know, it's it part of I think what you do a lot is to get your clients to the point where where that doesn't have to happen, where it isn't kind of a pure chance thing, and we've had uh several cases about wine collections, and that is fascinating, and you brought that up. And can you talk about wine collections and their sort of unique you know ways that they can be divided or evaluated, because that's not something that is just a universal, there's no Kelly book on wine. Right.

Wine Insurance Inventory And Missing Bottles

Kelly Lise Murray

Well, one thing to keep in mind is if you have a valuable wine collection and even before divorce, so just as a responsible owner of a valuable wine collection, you really should have it valued if that requires appraisal so it's insured properly. If you have the wine in your house, climate controlled and all properly stored, you still need to know your homeowner's insurance policy may limit a single item's value to $2,500. Well, if you have a bottle of wine worth $20,000, it's not properly insured. So that's my my first caution after reading these cases. You should already have that in place, which means in the divorce, you're just handing that information to your lawyer because you are because you were a more secured owner of these valuable items like wine. And then the next, the next thing in in divorce, if it's contentious, where what happens to the wine? Is someone kind of secreting some of the wine away? You would need an inventory, and there are some case law on that where a high asset divorce in Connecticut, the wife did an extensive inventory. Their wine collection was worth $60,000, $600,000, and it was stored in climate control wine cellar in the marital house, which was a very expensive marital house. She inventoried everything, time-stamped video, which you can do. Obviously, more even more professional is even more reliable, but she was able to document what was there. He hired movers, and most of the wine was gone. She redocumented it after the movers. He claimed, so it's a $600,000 wine collection. He claimed he'd only removed about $200,000 worth of wine. She was able to prove that's not the case from the moving company's records because he insured one case of wine for $250,000. That was just one case. They took over eight cases.

Intro/Outro

Yeah.

Kelly Lise Murray

Well, the documents, so that's how she was able to prevail on that issue because of the documentation from third-party movers.

Steve Altishin

Yeah. And it's something that I just don't think you, even in a divorce, are thinking about. You're getting a divorce, you're hanging, you walk in, you pull out a nice bottle of wine, and not thinking about, oh, am I dissipating assets?

Kelly Lise Murray

You are absolutely right. That's how I look at it. If you're so, unlike other assets, if you're drinking an expensive bottle of wine, you that could be considered dissipation, waste, wasting marital assets that could be sold. So if you drink a $20,000 bottle of wine, but I I can think of it, you know, lawyers, we can always think of the exception, right? I can think that if you are trying to land a big business deal and the owner of the company that you're trying to do business with is at your house for dinner and you pull out the $20,000 bottle of wine, you might be able to claim you were trying to increase the marital estate.

Steve Altishin

Yeah.

Kelly Lise Murray

But most of the time it is that way. And there's a case in Louisiana, intermediate appellate court in Louisiana, where the wife's, it was he said she said, but the wife said he drank some of these expensive bottles. And the court had a really equitable result in that case. The court accepted the wife's valuation of the wine collection, so that was the high end of the of the value. So it took the highest value of evidence in the record and then awarded all of the wine to the husband and giving her offset of different assets, which means if he really did drink the wine and the collection was no longer worth her value, he's the one who gets less. I thought that was a great result.

Steve Altishin

Well, I love that. It's the well, who was it? Was it the king minus who cut the cut the pie? Someone would cut the pie and the other person would, you know, choose which piece.

Kelly Lise Murray

That's right. Well, and it's it's that it that actually is fair. If he didn't drink it, he gets the full value. If he did, well, he already used some of that mineral asset. And I'm fascinated because when I'm looking at financial assets, you know, not uniquely valuable, but actually, you know, stocks and retirement accounts, I've seen that happen the same way. If it can't be valued, if it can't be valued, you just give it to the person who the evidence shows is the one who allegedly reduced it, mismanaged it, not not, you know, and just as a sidebar, you are not penalized in court for making a good faith but poor investment decision. But there there is, you especially for any valuable item, if you mishandle it, if it gets damaged or destroyed because you didn't insure it, you didn't properly box it up, that could be considered, that could be held against you, and then the other side gets more of a different asset to offset that that reduction in the marital estate.

Steve Altishin

Yeah. One of the things when we had talked about this, and I'm thinking, you know, it's not it's not, I guess, just fine, but but a lot of these divorces can go, especially complicated ones, possibly they can go two, three years. And wine ages. And it either can age and become good or can decline in value. And so I mean, if I had a big huge collection of wine, I would want to get this thing resolved right away. That could be, you know, uh other things. I mean, there may be a painting that right now is that that's a hot painter, let's get this thing valued now, and or before it it loses value. I mean, that seems to be in some of these things, it's it the value can go up and down.

Kelly Lise Murray

Well, and that's why the timing of valuing assets in divorce is heavily litigated in every state. Do you do you value it at the time the divorce petition was filed, at the time of trial, you know, and there it depends on the asset and depends on the state and depends on who's arguing what. You know, sometimes there's some uniformity, but yes, an asset can appreciate or depreciate after its valuation. So if if the if the court rules that, okay, it's going to be valued at the time the divorce petition was filed, if that asset goes down in value, you've got monopoly money right there.

Dissipation And Timing Asset Valuation

Steve Altishin

Yeah. The other one that you brought up, the other uh type of asset that you brought up that just I was kind of going, huh, really? And then I I I I'm thinking, this is really fascinating how these things may be valued or actually split, and it's firearms and guns. Absolutely. Yeah, the first thing that came to my mind was there could there may be a party who's not allowed to own a gun.

Firearms Ownership Limits And Safety Orders

Kelly Lise Murray

And there's case law on that. We have an answer for that. So that has been litigated in more than one case where if it if the if the firearms are marital, it's no big deal for the court to award it to the spouse eligible to own and possess those firearms. You know, that would be equitable division or even community property split. That would work. But what happens when some of those firearms are separate property? If it happens in a state where separate property remains separate, then that looks like an issue. Well, it wasn't an issue in this one case because the court relied, it was well, it was also a domestic violence order. So there's a domestic violence order, and the court awarded all of the firearms including separate property firearms to the wife because the the domestic violence order was against the husband because that that that the public policy of safety overrides the separate pro how separate property is usually handled and that that again is a just result. Yeah yeah in in um I don't know if it's all states but I know that a lot of states these these FAFAs the these restraining orders come with a um turn in your your guns they should i that just for everyone's safety that just makes sense now but now how however even without that it would seem that guns would be really interesting i i had i have a cousin who is helping someone trying to evaluate I don't know 13 rifles that from all the way back to the you know revolutionary war and it's gotta be tough there can't be a whole lot of people that you know but they're probably museum quality you know if they're museum quality that that's a different market you know yeah yeah I mean just to be able to see them just to see them would be fascinating so yes lawyers lawyers get to experience some uniqueness uh in every level of cases but certainly in this category you would yeah are are are guns and firearms treated the just the same way as any other piece of property if it's inherited or gifted you know and in in normal law or you know it's like okay this may I may have gotten this before may have been mine but now we're mixing it together and it can become marital property but you know if someone brought three guns into the into the marriage and you know they all went out hunting is can that change kind of how firearms get listed I have not seen a case on that and just thinking about how trans commingling and transmutation works with any kind of asset simple use seems like it wouldn't be enough this is exactly why you need a lawyer if that's your issue that has to be specifically researched. I did not specifically research that but I did find you were mentioning the estate and inheritance there's a case where the husband and wife died as a result of the husband's causing a car accident allegedly and because they were the the others involved so the third parties and also involved in the ass in the accident they were suing the husband's estate well the firearms were going to be 50% of it if it was still the husband's estate's property would have been subject to the judgment for causing the accident and the wife's estate argued that she inherited 100% of all of the guns just as the sir she survived him a little bit and so her estate was claiming that it survived it that the gun the guns were her estate's property. And if that was the case then the negligence lawsuit wouldn't have any couldn't reach 50% of the guns of the firearms value. So I thought that was really fascinating then that was the decision and then it was the burden of the estate to prove that it had or did not have the interest.

Steve Altishin

So it was that was so we can talk about the interesting fact sometimes the legal issue may be a little procedural it's very important but it's not as fun to talk about let's go to God we're just blowing through our time this is so fascinating there's so many questions but let's now talk about timeshares and I did bring this up because you did it it was a in our family a person a person who died had a had a timeshare and the estate probably went on an extra I don't know nine months only because they couldn't get rid of the freaking timeshare uh it's such a different different sort of thing I mean is it personal property is it real property is it property at all I didn't even know that was an issue until you asked me to look into this so that's what's so fascinating about it.

Kelly Lise Murray

You can sometimes find the answer straight away which is every lawyer's sigh of relief, right? Oh great there's an immediate answer. But actually the case I found is in Texas and it was only an issue for the case. So here's what happened the husband was claiming that the wife was too late that the statute of limitations had expired. She was trying to enforce the property division regarding the timeshare if the timeshare was personal was real property like owning real estate the legal term for real estate is real property. So the the legal issue was if this timeshare value was real property she was too late. She did absolutely everybody agreed she from the date she filed her complaint to enforce the statute of limitations to enforce real property disputes had expired. But if it was personal property she had more time and she was timely and what the court decided won't really help anyone else but the court decided that it was that the burden to prove whether it was real property or personal property was on the husband and that he failed to present sufficient evidence to meet his burden. So we get a non it's not helpful to really to anybody else other than to know you have to meet your burden of proof if this is your defense to an enforcement action. I find it interesting hopefully other lawyers will find it interesting. It's just not as fun to talk about in a chat I like it I like it.

Steve Altishin

Yeah it's when you look at it it's it's is it an investment is it is it a a because you don't really own anything.

Timeshares Real Property Or Money Pit

Kelly Lise Murray

So first year of law school we learned about this the sticks in the bundle of rights it's like a half stick yeah because and I have another case that valued a timeshare. So in a divorce the timeshare was valued $50,000 but because they have to pay nine thousand dollars a year that reduces its marital balance sheet value. That's yeah so you don't own it you get to use it sometimes and you have a significant annual financial obligation yeah yeah I mean those things could become a a minus value and there is a there are I've seen have you seen the advertisements there are advertisements of of companies that will help you get out of a timeshare because it's so difficult. Yeah absolutely wow so thank goodness those exist because I've seen lit I've seen it litigated where they're litigating let me out of being obligated to pay this $9,000 a year for something I'm not even using.

Steve Altishin

Wow well before we go I do want to have allow you to talk about or ask you to talk about if someone wants to get a hold of you before before you know if they have any of these issues. But I think what we've talked about makes me think more and more that it's not just the general art can be difficult or this that can be difficult. It's it's it's you know nuclear it's it's each thing two pieces of art can be completely different and have to be treated completely different. Or I mean it's it gets that that granule to me it feels like and need people like you and and teams that can work that know how to do this because boy this is a swamp it can it could clearly get to be.

How To Reach Kelly And Resources

Kelly Lise Murray

So what what I do I focus on enforcement of property division and the best time to enforce your property division is preparation before mediation. So there are there are protections you can put into a mediated settlement agreement that will help you enforce later and there are things you can omit from your mediated property settlement agreement that will make enforcement harder. And of course if you've agreed to give up certain assets you're right the art some of the art and some of the wine but you're keeping the gun collection and then the other side doesn't give you the gun collection you want to be able to enforce that. So that's my current legal scholarship that's my focus and so that's enforcethedivorce.com but on the other side I've been teaching real estate agents and mortgage professionals how to help you and your legal team and your divorce financial team get the documents and information you need to make an informed decision about house's value can you keep it which is different than should you keep it which is different than will you keep it yeah so all of those things all of that preparation we really help the folks I've trained help you prepare for mediation about the house and about the mortgage and about liens to generate an informed decision but an enforceable settlement. And that's key because if you can't enforce it did you really you didn't get the benefit of the bargain to use the re the legal term. So that's that's divorcethishouse dot com and I've created a an ebook about our our session today and you can get that at pcl.divorcethishouse dot com and I'll say that again pcl.divorsthishouse dot com you can download the ebook and have a so you don't have to take notes of what we were just talking about.

Steve Altishin

Good I love it I love it wow Kelly thank you so much for being here today to talk about this is unique high asset stuff gets complicated fast needs a really good team and you were able to talk about it in a way that these complex issues can be understood like even someone like me. So that's a great job so thank you for being here today.

Intro/Outro

Thank you so much Steve Oh it was great and everyone else thank you for joining us anyone has any further questions on today's topic well you can post it here and we can get you connected with Kelly you can call Kelly or get connected by yourself as well and until next time everyone stay safe stay happy and be well this has been Modern Family Matters a legal podcast focusing on providing real answers and direction for individuals and families our podcast is sponsored by Lander Home Family Law and Pacific Cascade Family Law serving families in Oregon and Washington. If you are in need of legal counsel or have additional questions about a family law matter important to you please visit our websites at landerhome law.com or Pacificcascade FamilyLaw.com you can also call our headquarters at 503-227-0200 to schedule a case evaluation with one of our seasoned attorneys modern Family Matters advocating for your better tomorrow and offering legal solutions important to the modern family