Asset division is often one of the most detailed and contentious issues in a divorce. Most people are familiar with dividing common marital assets like the family home, vehicles, and shared bank accounts. However, marital estates often contain more unusual or hidden assets that can be overlooked without a careful and thorough evaluation. Identifying and accurately valuing these unique marital assets is essential to ensure a fair settlement, and an experienced divorce lawyer can provide critical support in this area.
Here are some uncommon marital assets you should consider in a divorce to ensure you receive a fair division of the marital estate.
Collectibles and Memorabilia
Collectibles are often overlooked, yet they can hold significant value. Collections might include rare coins, stamps, vintage wines, sports memorabilia, art, comic books, or antique firearms. Even if these items seem like mere hobbies, their actual value can be substantial. For example, certain sports memorabilia or rare art pieces can be worth thousands or even millions of dollars. When identifying and valuing these types of assets, a divorce attorney can connect you with professional appraisers specializing in specific collectible markets, ensuring you have an accurate estimate of their worth.
Frequent Flyer Miles and Reward Points
Many people accumulate significant rewards through loyalty programs, including airline miles, hotel points, and credit card reward points. Though intangible, these assets can represent considerable value, especially if you have accrued miles for international travel or premium status benefits. Dividing these assets can be challenging, as each rewards program has specific terms and conditions regarding transferability. A divorce lawyer can help negotiate an equitable split of these benefits or, if necessary, determine a monetary value for them as part of the marital estate.
Digital Assets and Cryptocurrency
Digital assets have become increasingly common in marital estates. Cryptocurrency, for example, can be challenging to track and value, especially if one spouse is hiding assets in digital wallets. There are other digital assets to consider, such as online businesses, website domains, digital files, and intellectual property, including e-books, digital music libraries, and monetized YouTube channels. Cryptocurrencies like Bitcoin, Ethereum, and others are highly volatile, and their fluctuating value requires careful handling in divorce proceedings.
Deferred Compensation Plans
Deferred compensation plans are arrangements where employees defer a portion of their income to be paid later, usually after retirement. These plans can include stock options, restricted stock units (RSUs), and bonuses that have not yet been vested. Because these assets may not be immediately available, they’re easy to overlook, but they represent potential future income subject to division.
Intellectual Property (IP) and Royalties
If one spouse owns intellectual property, such as patents, copyrights, trademarks, or royalties from creative work (such as books, music, or software), these assets may be subject to division. Intellectual property can be difficult to value due to its intangible nature and potential for future income, making it a complex asset in divorce proceedings.
Memberships and Club Benefits
Many couples invest in exclusive memberships, including country clubs, yacht clubs, or golf courses, which can carry substantial value. Some memberships may also come with transferable benefits or perks, such as access to private events or significant discounts. While often overlooked, these assets can be a substantial part of the marital estate.
Because these memberships often have detailed terms, including transferability restrictions, a divorce lawyer can help assess the value of these memberships and negotiate their division. Depending on the membership type, it may be possible to transfer or sell it, or you may be entitled to compensation if the membership stays with your spouse.
Life Insurance Policies
Life insurance policies, especially those with a cash value component, can be a valuable but often overlooked asset in a divorce. Permanent life insurance policies, such as whole life or universal life, accumulate cash value over time, which can be withdrawn or borrowed against. Additionally, even term life insurance policies may hold value if they are paid up and continue to provide a death benefit.
Hidden or Unknown Bank Accounts
In some divorces, one spouse may attempt to hide assets in unknown bank accounts or financial institutions. To avoid detection, these accounts may be set up in offshore banks or opened under different names. Uncovering these hidden assets on one’s own can be nearly impossible for individuals without extensive financial knowledge.
Business Interests and Partnerships
If either spouse owns a business or holds an interest in a partnership, accurately valuing and dividing these interests is essential. Business assets are among the most complex assets to divide, as they involve not only tangible assets but also goodwill, client lists, and future income potential. Whether it’s a family business or a part ownership in a larger company, business interests can be difficult to assess without professional guidance.
Pension Plans and Retirement Accounts
Pension plans and retirement accounts, such as 401(k)s and IRAs, are subject to division in a divorce. While these assets may seem straightforward, dividing them can be complicated, especially when considering tax implications and potential penalties. For example, a Qualified Domestic Relations Order (QDRO) may be required to divide a retirement account without incurring penalties.
Why You Need a Divorce Lawyer for Unusual Marital Assets
While it may seem possible to handle a divorce on your own, the involvement of unusual or complex assets makes it critical to have professional guidance. A skilled divorce lawyer brings the knowledge and experience to:
- Identify and Value Complex Assets: Attorneys are trained to investigate and identify all marital assets, even those that may be hidden or overlooked. They work with appraisers, forensic accountants, and financial experts to ensure you receive an accurate valuation of assets.
- Navigate Legal and Tax Implications: Many unusual marital assets have complicated tax implications. An attorney will understand these tax issues, negotiate favorable terms, and file the necessary paperwork to protect your financial interests.
- Negotiate Equitably: Divorce attorneys are skilled negotiators who work to ensure you receive a fair share of the marital estate. They can advise you on which assets may be worth fighting for and avoid agreements that may seem fair initially but have hidden financial risks.
- Ensure Compliance with Legal Requirements: Some assets, like retirement accounts, require specific legal documents and filings. An attorney ensures all steps are completed according to state and federal law, safeguarding your rights.
The division of marital assets is a critical component of divorce, and overlooking even a single asset can have long-term consequences on your financial future. Unusual marital assets require unique knowledge, careful valuation, and thorough legal insight to ensure a fair and equitable settlement. By hiring a divorce lawyer, you can feel confident that your unique marital assets will be appropriately accounted for, allowing you to move forward with financial security. Contact one today to protect your rights in a divorce.