Divorcing spouses typically obtain or exchange information about each other’s incomes, assets, and debts acquired during the marriage. This process, called “discovery,” typically includes exchanging documents that include bank and other account statements, credit card statements, and employment records. Accurate values for assets like a home, business, or retirement plan, however, might require outside professionals like appraisers or accountants.
While you might be familiar with certain financial assets in your spouse’s name, it’s likewise important to consider these “assets,” which are often overlooked in divorce:
Stock Options & Restricted Stock
Corporations are increasingly granting stock options as compensation for past or future services. Likewise, costly litigation can arise over whether stock options are marital assets, and if so, how they should be valued and divided.
Capital Loss Carryover
Generally, if the sale of an investment or capital asset like a piece of real estate resulted in a loss, it can be used to offset capital gains, or otherwise, to lower ordinary income tax liability. Capital losses can be carried forward into subsequent years as needed until they are fully deducted.
For example, in a recent divorce case, I represented a wife whose husband carried over losses claimed for commercial real estate on his separate income tax returns for several years. Yet, in the divorce, the husband insisted the wife should share in tax liability when the property was sold. If the Wife had agreed, it would have cost her tens of thousands of dollars. Fortunately, we were able to resolve the issue out of court.
Collections and Memorabilia
Personal property is an area where valuable assets can be easily overlooked. It’s important to consider these potentially valuable items to divide in the divorce:
- Jewelry
- Furs
- Collections of coins or stamps
- Guns or other weapons
- Recreational vehicles
- Artwork
- Antiques
- Sports memorabilia and trading cards
- Classic cars
- Fine wines
Credit Card Reward Points
When dividing up assets in a divorce, it can also be easy to overlook credit card rewards points. Generally, credit card rewards earned during the marriage are likely considered a marital asset, regardless of which spouse earned them.
The above assets are just some that can have significant value and easily get overlooked. It’s therefore important to consult with an experienced family lawyer to make sure you don’t walk away from potentially large amounts of money in your divorce.
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