Marital Assets You Might Forget
A significant component of divorce is the division of marital assets (defined as property acquired during the marriage by either of you). In California, assets that are acquired during the marriage are considered community assets, and those are typically divided 50/50.
While the real estate, autos, retirement and bank accounts are often top of mind in the division of assets between parties, there are many marital assets that are not so readily apparent.
It is important to identify and divide all assets for an equal division of the community property. The assets that are often overlooked include:
· Frequent flyer miles
· Hotel points
· Credit card points
· Season tickets to cultural or sports events
· Intellectual property (including copyrights, patents, trademarks, creative works that have not yet produced royalties)
· Deferred compensation that is accruing (profit sharing that is not yet paid out) typically in consulting firms, partnerships, etc.
· Capital investment in partnerships such as law firms and other professional career entities
· Goodwill value of a business or professional practice. While the business may be identified as community property, the valuation should include professional and enterprise goodwill.
· Stock options which have been vested but not yet exercised.
· Cemetery plots and prepaid funeral arrangements.
· Paid in full long-term care insurance.
· Loans made to family or friends that are outstanding and not yet repaid.
· Tax refunds that have not yet been received.
· Carryover losses from taxes.
· Vacation time
· Digital assets including NFTs and cryptocurrencies
It is important to identify and secure a valuation for these assets to ensure that the community property is being divided equally.
This article does NOT constitute legal advice and is for general information purposes ONLY. Prior to making any decisions, seek legal counsel from a licensed attorney.
