What Are Some Unusual Marital Assets to Look For?

November 1, 2024 | By Roy M. Doppelt
What Are Some Unusual Marital Assets to Look For?

For most couples, divorce is a complex process, especially when it comes to dividing marital assets.

While most people know that a divorce may divide the family home, bank accounts, and retirement funds between the spouses, some unusual or overlooked assets can also come into play. Spouses may forget about these assets in divorce proceedings, resulting in unfair settlements or missed opportunities.

A lawyer who can identify and properly evaluate these assets can ensure a fair division of property in divorce proceedings.

When you hire a knowledgeable property division attorney, they can educate you about unusual marital assets to look for when going through a divorce, why they matter, and how to account for them in your settlement.

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What Are Marital Assets?

Two keys with split house matching keychains on a wooden table. Splitting assets in a divorce.

Before diving into unusual assets, let's define marital property.

Marital property is generally any asset acquired during the marriage, regardless of whose name it's in.

This can include:

  • Real estate—including the family home and vacation properties
  • Bank accounts
  • Retirement accounts
  • Investments
  • Personal property like cars and furniture

However, it can also include things you might not expect. These unusual or overlooked assets can make a significant difference in a divorce settlement.

Why Are Some Marital Assets Overlooked?

Some marital assets are often overlooked because they may not be as obvious as bank accounts or physical property. They may be intangible, difficult to value, or forgotten in the busyness of life and the stress of a divorce.

Additionally, in some cases, one spouse may attempt to hide or undervalue assets to prevent them from being included in the divorce settlement. You need a lawyer to thoroughly investigate and account for all assets, including the less traditional or easily hidden ones.

Unusual Marital Assets to Consider

Frequent Flyer Miles and Travel Rewards Points

Many couples accumulate significant amounts of frequent flier miles, hotel points, or other travel rewards over the course of their marriage. These can have considerable value, especially for frequent travelers, and divorce settlements often forget them.

Even though these points or miles may not have a direct cash value, they can still represent significant worth when redeemed for travel, merchandise, or experiences. A lawyer can determine how to divide these assets, whether through an even split of the points or assigning a monetary value to them.

Season Tickets and Memberships

Season tickets to sporting events, concerts, or theater performances can also hold significant value, especially for a high-demand team or venue. These are often considered marital property and should be addressed in divorce proceedings. 

Additionally, exclusive memberships to clubs, golf courses, or other recreational facilities can be valuable assets that may need to be divided or compensated for.

In some cases, these memberships or tickets may be transferable, while in others, they may need to be sold or assigned a value to compensate the other spouse.

Intellectual Property

Intellectual Property Rights, Copyright, Patent or Trademark Infringement.

Intellectual property (IP) can easily go unnoticed during a divorce. Patents, trademarks, copyrights, and other forms of intellectual property can generate substantial income over time. If one spouse created or acquired intellectual property during the marriage, it may constitute marital property, even if it's solely in their name.

The challenge with intellectual property lies in valuing it. The worth of a patent or trademark can fluctuate based on market demand, potential royalties, and other factors. A thorough evaluation by a financial expert may need to ensure its proper inclusion in the divorce settlement.

Collectibles and Antiques

While items like art collections, antiques, and rare memorabilia may seem like personal property, they can have significant monetary value, especially if they appreciated over the years.

This can include:

  • Fine art
  • Rare coins
  • Stamps
  • Wine collections
  • Classic cars
  • Sports memorabilia

The value of these items is often subjective and requires professional appraisals. Even though one spouse may be more emotionally attached to these items, their monetary worth should not be ignored when dividing assets.

Digital Assets and Cryptocurrencies

Cryptocurrency on Binance trading app

As the digital world expands, so do the types of assets people can hold online. Cryptocurrencies like Bitcoin, Ethereum, and others are now common investments and can be highly valuable.

However, due to their volatility and decentralized nature, you need a lawyer to track and value these digital assets. Additionally, a spouse can easily hide them in obscure digital wallets if the other spouse doesn't know about them.

Besides cryptocurrencies, other digital assets like websites, domain names, social media accounts with monetization potential, and even digital content like eBooks or software can hold value. A lawyer will understand how to locate, access, and value these assets during a divorce. When you hire an experienced divorce lawyer, they can identify, find, and value these assets.

Deferred Compensation and Bonuses

While it's easy to overlook future payments like bonuses, stock options, or deferred compensation packages, they may constitute marital property if they were earned during the marriage. Even if they haven't paid out, you can still make them part of the division.

Stock options and restricted stock units (RSUs) require a lawyer to value, as their worth depends on future performance and market conditions. Both spouses need to know about these future earnings to ensure a fair division of assets.

Loyalty Programs and Credit Card Points

Like frequent flier miles, loyalty programs with retailers, hotels, and credit card points can offer substantial savings or perks. Divorce settlements often overlook them, yet they can hold significant value when redeemed for products or services.

Usually, the spouses can split these points, or one spouse may receive a higher share of other assets to compensate for the points or rewards.

Business Interests

If one or both spouses own a business or part of a business, this can complicate the division of assets. A business is often one of the most valuable assets in a divorce, and even if one spouse primarily ran it, a divorce can result in its division between the spouses.

When dividing a business, your lawyer will consider:

  • The value of the business at the time of the divorce
  • Each spouse's involvement in the business
  • Future income potential

An expert valuation of the business is typically necessary, and in some cases, one spouse may need to buy out the other's interest, or they need to sell the company and divide the proceeds. Your divorce attorney can explain more about your options and determine the right option for you if you and your spouse own a business going into the divorce.

Pensions and Retirement Accounts

While pensions and retirement accounts are common assets considered in divorce, a divorce settlement can sometimes overlook their value—especially pensions, which may not pay out for years after the divorce finalizes.

Additionally, some retirement accounts, such as 401(k)s or IRAs, may penalize early withdrawal, and couples must consider how to handle them when dividing assets. A Qualified Domestic Relations Order (QDRO) may need to ensure the proper division of those retirement accounts.

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

Health saving account, hsa concept

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are tax-advantaged accounts that can accumulate substantial funds over time. Divorce proceedings often overlook these accounts, but they can represent a significant marital asset if both spouses contribute to them during the marriage.

HSAs, in particular, can carry over funds from year to year and may hold thousands of dollars, which the settlement can divide.

Unvested Pensions and Stock Options

If one spouse has unvested pensions or stock options from their employer, they can constitute highly valuable marital property, even though they haven't yet vested. Divorces often overlook these assets.

The value of these assets may depend on job retention or company performance, but a divorce settlement should still evaluate and consider them. Your divorce lawyer can ensure that it does.

Luxury Items

Luxury items such as designer handbags, watches, high-end jewelry, and rare collectibles can hold substantial value.

If you and your spouse own these items and you don't want to keep them, you can use them as a bargaining chip. Even if one spouse doesn't particularly care about the items, they can trade them for other assets during negotiations.

Personal Loans or Debts Owed to the Couple

If the couple has lent money to friends, family members, or business partners during the marriage, those loans are considered marital assets. Even an unpaid loan can still represent value that a divorce can divide between the spouses.

Likewise, if one spouse owes a significant amount of personal debt, the division of marital assets may need to account for it, particularly if they incurred it for the benefit of both parties.

Intangible Assets and Goodwill

Goodwill refers to reputation, customer loyalty, and other intangible factors that add value to a business beyond its physical assets.

Valuing goodwill requires a lawyer to determine the overall worth of a business or professional practice during a divorce.

Life Insurance Policies

Divorce settlements often overlook life insurance policies, particularly whole life insurance policies with a cash value. The spouses can divide the cash value of these policies, or one spouse may receive the policy while the other receives compensation in another form.

Additionally, term life insurance policies may not have a cash value but can still constitute a significant asset, particularly if they provide financial security for dependents.

How to Ensure You Identify and Value Unusual Assets

Locating, identifying, and valuing unusual marital assets during a divorce requires thorough investigation and financial expertise.

Here are some steps to take:

  • Work with a Forensic Accountant: A forensic accountant can track down hidden assets, identify unusual or complex holdings, and properly evaluate them.
  • Hire a Professional Appraiser: For assets like collectibles, antiques, and real estate, professional appraisers can provide accurate valuations to ensure a fair property division.
  • Review Financial Documents: Thoroughly reviewing tax returns, bank statements, and other financial documents can uncover hidden or overlooked assets like bonuses, stock options, or personal loans.
  • Don't Overlook Digital Assets: Inquire about cryptocurrencies, digital wallets, and other online holdings.
  • Get Legal Guidance: A skilled divorce attorney can account for all unusual marital assets so the divorce properly and fairly divides them.

Do You Want a Fair Divorce Settlement? Hire a Seasoned Divorce Attorney Today to Account for All Marital Assets

Dividing marital property during a divorce is never simple, but overlooking unusual assets can result in an unfair settlement. If you receive an unfair settlement, you may not fix it once the damage is done.

From digital currencies to intellectual property, many less obvious assets may hold significant value.

To ensure a fair and equitable division, work with professionals who can identify, value, and properly account for these assets, including a seasoned divorce lawyer. 

By hiring an attorney and paying close attention to these less traditional holdings, you can protect your financial interests and secure a more favorable outcome in your divorce.

If you are considering a divorce or are currently going through one, now is the time to reach out to a San Diego divorce lawyer for help uncovering any unusual marital assets you might have with your spouse.

Roy M. Doppelt Author Image

Roy M. Doppelt

For nearly 30 years, San Diego family law attorney Roy M. Doppelt, Esq. has been providing clients in Southern California with comprehensive legal services. He is currently an active member of the California and San Diego Bar Associations, and he is admitted to practice law in both California and Illinois state courts, as well as the Federal District Court for the Southern District of California.

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