Divorce in haste and you might repent at leisure. During this very emotional time you need to make sure you investigate and value all assets in your marital estate. Below are ten commonly neglected assets that you must account for in your divorce to protect your fair share of Property Division:
1. Frequent Flyer Miles, Points, Hotel, and Loyalty Rewards
Loyalty rewards programs—such as Amex, Chase, Southwest, and United—often hold significant value. These points and miles are marital assets and should be included in the division of property. Request statements for all loyalty and mileage accounts, and check for any suspicious withdrawals or transfers during the divorce process. Large withdrawals or depletions may warrant additional scrutiny.
The values for points can be found at websites such as ThePointsGuy’s valuation page.
2. Dissipation of Marital Assets
If you suspect your spouse is wasting marital funds—whether on a paramour, luxury purchases, or expensive trips—it’s essential to review credit card statements and bank account records. Look for luxury expenditures, gifts, hotel stays, or substantial cash withdrawals. Courts may classify this type of wasteful spending as “dissipation” and could add back these amounts as marital assets. In many cases, the court may award you a larger share of other assets to offset this misuse.
3. Stock Options, Restricted Stock Units, and Incentive Compensation
Stock options, restricted stock units (RSUs), and other incentive compensation plans can be extremely valuable, often far more than what is visible at first glance. Obtain copies of all plan documents, award statements, and current valuations for these assets. Because employees often view these benefits as personal rewards, they may be resistant to sharing. An expert can help determine whether these assets are marital property subject to division and ensure they are valued appropriately.
4. Deferred Compensation and Health Savings Accounts
Many high-earning executives defer part of their income into deferred compensation plans. You must request the election documents to understand how and when these funds will be paid out. Be mindful of the tax implications, as deferred compensation is often taxed heavily when received in a lump sum. Health savings accounts (HSAs) can also hold significant value and should be accounted for during property division.
5. Differential Values in Social Security Benefits and PERA
Social Security benefits are not considered marital property subject to division, but differences in anticipated benefits between spouses can influence the court’s equitable property distribution. Obtain statements showing both parties’ Social Security retirement benefits, and consider this as part of the broader financial picture. If you or your spouse have a PERA (Public Employees’ Retirement Association) pension, ensure that it is properly valued by an expert. The true value of a PERA pension is often significantly higher than the total contributions made, so avoid relying on contribution statements alone.
6. Trust Interests
Irrevocable trusts may be classified as property or considered as part of the overall economic circumstances in a divorce. While asking family members about trusts can be uncomfortable, it is critical to determine whether you or your spouse are beneficiaries. Many families prefer to keep estate plans private, but uncovering this information can reveal assets that are valuable and relevant to the divorce. Trust interests may require expert valuation to ensure fairness in the property division process.
7. Family Limited Partnerships
Family limited partnerships (FLPs) are often used as estate planning tools to gift or transfer ownership interests to children. Check recent tax returns for Schedule K-1 forms, which could indicate partnership income or ownership interests. These interests may be marital property and should be valued appropriately during the divorce.
8. Loss Carryforwards
Tax loss carryforwards can represent a hidden but valuable asset. These losses allow you to offset future income, providing significant tax savings. Review prior tax returns carefully to identify any unused loss carryforwards, as they should be accounted for in the division of marital assets.
9. Business Interests
Business interests are often among the most valuable assets in a divorce, yet they are frequently overlooked or undervalued. Even if the business generates income primarily through the owner’s services, it may still hold substantial value. Do not accept claims from your spouse that “the business is just them” or that they will stop working if their interest is valued. Courts routinely assign significant value to businesses, regardless of these assertions. A proper valuation by a financial expert is essential to ensure fairness.
10. Accrued Paid Leave and Digital Assets
Accrued paid leave, such as vacation time or sick leave, can be financially valuable if an employee is entitled to a payout upon leaving their job. Make sure to request information about any accrued leave benefits and include these in the marital property division. Additionally, digital assets like cryptocurrencies, domain names, online businesses, and other virtual holdings are increasingly common. These assets may have significant monetary value and should not be overlooked.
Final Thoughts
Do not leave valuable assets on the table. You deserve to receive your equitable share of what you have worked hard to accumulate.
Dividing marital property requires diligence, patience, and attention to detail. Overlooking any of these valuable assets can lead to an inequitable outcome. Whether it’s frequent flyer miles, deferred compensation, or digital assets, each of these items deserves a thorough investigation and proper valuation. By identifying and including all assets in the marital estate, you can ensure that you receive your fair and equitable share of what you’ve worked hard to accumulate.
When navigating divorce, consider consulting experienced financial and legal professionals to help you uncover these often-overlooked assets and protect your financial future.
Suzanne Griffiths is the Managing Shareholder and CEO of Griffiths Law PC. She has been recognized by the Best Lawyers in America© since 2019 for family law and has been selected to Colorado Superlawyers since 2005. She has also been recognized in 5280 magazines for Top Lawyer in Family Law in Denver since 2016.