Divorce can make the future of your home, retirement savings and business seem uncertain. That concern may deepen if part of your wealth sits outside ordinary bank or brokerage accounts.
If you are a business owner going through a divorce, identifying every asset can help you assess your financial position. Careful research may uncover valuable interests missing from routine records and bring them into settlement talks.
They can include future employment benefits and money others owe you. Here are 10 assets that might otherwise escape notice during the financial review.
Unvested stock options and restricted stock units (RSUs)
Executive compensation can include stock options, restricted stock units and performance shares. Even benefits that vest after divorce could contain a share earned during the marriage.
Deferred compensation and executive benefits
Some employers hold bonuses or commissions in deferred compensation plans. Supplemental executive retirement plans and related benefits may appear only in employment agreements or benefit records.
Business goodwill and retained earnings
A closely held company may keep profits instead of paying them to its owner. Those earnings, along with its reputation and customer relationships, could affect the company’s value.
Health savings and spending accounts
A health savings account can hold cash or investments from year to year. Unlike a health savings account (HSA), a flexible spending account (FSA) generally has use-or-lose rules, though a plan may allow a limited carryover. FSA records could also reveal reimbursements still owed for eligible expenses.
Cryptocurrency and digital income
Cryptocurrency may sit in an exchange account or cold-storage wallet. Websites, online stores and intellectual property rights could also hold value or produce royalties.
Rewards and valuable memberships
Airline miles, hotel points and credit card rewards may have significant practical value. Program rules can limit transfers. Club memberships and season ticket rights might also deserve review.
Estimated tax overpayments
Large quarterly payments could create a future federal or state refund. Past returns and tax records may show an overpayment that will produce funds after the divorce.
Cash-value life insurance
Permanent life insurance often builds cash surrender value, unlike term coverage. The policy owner may have the right to withdraw that amount or borrow against it.
Loans and notes receivable
Money advanced to a relative or business partner can create a right to repayment. Written notes and bookkeeping entries can show whether the balance remains unpaid.
Premarital property and inheritances
A court may consider assets you owned before marriage or received as an inheritance. Their treatment often depends on factors such as the marriage’s length, the property’s use and each spouse’s contributions.
This analysis reflects Massachusetts’ equitable distribution system. It seeks a fair allocation rather than an automatic equal split. A court may assign property owned by either spouse, including vested and nonvested benefits accrued during marriage. The judge also considers income, liabilities and other statutory factors.
Why you may benefit from a complete asset review
Missing property can skew negotiations and leave you with fewer resources after divorce. Tax returns, insurance statements and business books can provide a clearer financial picture.
An attorney may help trace hidden assets and determine which records to seek. A forensic accountant or other financial professional can follow transactions and examine complex holdings.