"About a year ago we were having dinner with our son," said Loni, who adopted a 26-year-old son with Burt. "Jon Voight was at the dinner with us, and we were all talking about all the stuff that you accumulate over the years. We'd been thinking about scaling back: 'What are we gonna do with all this stuff? Do you have a museum for yourself? No.' And so what are you gonna do with it? Share it."
Before their split in 1994, Burt spent millions showering Loni with gifts, including diamonds, paintings and furs, but Loni's most cherished item from the collection is her 1988 wedding dress.
"It has all the romance and the tradition, and it was such a special day," said Loni.
Sixty-five of Loni's items are going up for sale this Friday and Saturday, while Burt is unloading more than 600 items at his own auction at The Palms in Las Vegas on Dec. 11 and 12. The most shocking piece of memorabilia being put up for sale? His 1998 Golden Globe for his supporting role in Boogie Nights.
"I want everyone to know that contrary to what all the news outlets are saying, I am not broke," Burt told ET exclusively. "I have been dealing with a business dispute for many years as well as a divorce settlement. I am simply selling some of my memorabilia that I have enjoyed for so many years but do not have use nor room for them anymore."
"Quite frankly, I am sick of so many pictures of myself in my own home," he added.
Earlier this year, Burt paid Loni $155,000 that she claimed he owed from their divorce settlement 20 years after the end of their five-year marriage.
While a lot of mud was thrown during the divorce (he accused her of infidelity, while she accused him of being abusive), today that all seems to be water under the bridge.
"You just need a break after," said Loni. "If it's a messy divorce, then you need a break and you go back and you go, 'Well there wasn't 12 terrible years. There was just that end.' So you go back and start thinking, 'Oh, I remember that! Oh, we laughed so hard! Oh, that was so fun!'"