In most cases, the obvious assets like bank accounts, vehicles, real property, retirement, etc. are easily identified during a divorce, but many times people overlook assets that are less obvious but can have a lot of value. Here is a list of the most common things forgotten about during divorce negotiations:
- Credit Card Points and Airline Miles: Many people accrue traveler’s reward points or credit card miles by using certain cards for certain purchases. While you may not be able to easily divvy up the points, you can ensure a fair trade-off if one of you keeps the balance in lieu of other assets. This website helps with determining value at the time of your divorce, as well as the ability to assign to another person: https://thepointsguy.com/guide/monthly-valuations/
- Tax refunds: If you carried over last year’s tax return to apply to this year’s taxes or if you have a return coming to you this year, take those funds into account in the asset division. It can be hard to remember this during the divorce if it isn’t tax season or if you usually have an accountant handle your taxes.
- Capital Loss Carryforwards: Capital losses can be carried forward into subsequent years as needed until they are fully consumed. These need to be looked at carefully so that the spouse who suffered the loss can use the carryforward for their taxes or if the losses were incurred jointly that the carryforward is divided equally so both parties can use it.
- A 401(k) or Other Deferred Benefits from a Previous Employer(s): Check to see if there are any stocks, retirement accounts or deferred compensation plans from previous employers. Even short stint employment could result in a retirement account that adds up over the long run.
- Collections and Memorabilia: If there are collections of any type or unique items it is worth consulting with an appraiser to assess the current market value during a divorce. Some examples are:
- Artwork
- Antiques
- Sports Memorabilia
- Comic Books, coins, or stamps
- Fine Wines
- Guns or other weapons
- Vintage cars
- 529 Plan Funds: While these accounts are set up for the benefit of the child(ren) the parent is typically the account holder and the person who retains the “account owner” status in a divorce has full authority to withdraw funds at any time so protecting these funds set aside for college is important as most states do not have child support for children over the age of 18.
- Gifts Received During the Marriage: People automatically assume gifts received during the marriage are separate property, but this is not the case in every jurisdiction. Gifts received prior to marriage are usually separate property but check with the local law to get clarification.
- Country Club Memberships: While these memberships can be difficult to value, they can frequently be returned to the club or sold to another party (sometimes at a profit). Make sure this asset is listed and you understand your options.
- Pets: The law in many jurisdictions is starting to have an opinion on the custody and financial responsibility of family pets and even though they interact with them every day people often forget them in their discussions. Check if there is local precedence for deciding how to handle pets in a divorce and what is best for your family’s situation.
- Safe Deposit Boxes and Storage Units: These are places that people put things and forget about them. They are on auto-payment and the people running these storage places like it that way. During a divorce as accounts are getting closed and assets divided these locations need to be identified and cleared out if possible or decide how the payments are going to be made while decisions are being made about the assets in these locations. If payment lapses both spouses could lose the contents, which would be unfortunate.
Try to avoid missing some of these less obvious “assets” early in the divorce process as it can save you financial and emotional energy bringing these up late in the negotiation process or after you have signed your settlement agreement.
