In a high-asset divorce, people’s minds usually go toward the obvious: the family home, investment accounts, retirement savings and maybe a vacation property or two. However, some of the most valuable marital assets are often overlooked. When that happens, one party can end up leaving money on the table.
New Jersey follows an equitable distribution system, which means marital property is divided fairly, although not necessarily equally. Before that can happen, both spouses should take a careful look at what they own, so that nothing is overlooked.
5 assets worth careful consideration
Some assets are easily missed just because they aren’t readily accessible, have no obvious market value or won’t provide a financial benefit yet for many years. These include:
- Deferred compensation and bonuses: Money earned during the marriage doesn’t necessarily become separate property simply because it won’t be paid until after the divorce, but not everyone is aware of that.
- Cryptocurrency: Bitcoin and other digital investments may be held in multiple wallets or exchanges, making them easier to overlook than traditional investments – and they’re incredibly hard to value.
- Intellectual property and royalties: Patents, copyrights, licensing agreements and other intellectual property rights can generate income for years.
- Cash-value life insurance: Unlike term life insurance, permanent policies can accumulate cash value that may be subject to equitable distribution in a divorce.
- Private equity and carried interests: Investments in private funds and rights to future investment profits can represent considerable wealth, even when their current value is difficult to calculate.
Identifying these assets doesn’t automatically mean they’re all marital property, however. Determining which portions are subject to equitable distribution, establishing their value and deciding how to divide them may require the use of financial experts.
In a high-asset divorce, a solid review of both spouses’ records can help ensure that the final property division reflects the full marital estate and the process stays fair.