The major purpose of the design of distributed databases is to improve system performance and to increase system reliability. Fragmentation and allocation play important roles in the development of a cost-efficient system. This paper addresses the problem of fragmentation in the context of complex value databases, which cover the common aspects of object-oriented databases, object-relational databases and XML. In this paper, we present a cost-based approach for horizontal and vertical fragmentation. Our approach is based on a cost model that takes the structure of complex value databases into account.