Remember these assets in your divorce

| Dec 21, 2020 | Divorce |

Couples typically remember major assets such as their home, vehicles, and bank and retirement accounts in their divorce negotiations. But spouses should also consider other valuable assets that are typically overlooked when they negotiate property division.

Frequent flyer miles

These points could be worth thousands of dollars in benefits if you or your spouse were frequent travelers. The spouse with these points can issue free tickets in the other spouse’s name as more people use air travel in the post-pandemic future. Or they can value the benefits and compensate their other spouse.

Unused leave

A spouse can receive substantial money if their employer lets them cash out their vacation or sick days. Each spouse should contact their employer’s human resources department for

information about their leave policies and the value of their unused leave time.

Tax refunds

Tax refunds will be sent in the name of both spouses if they filed a joint return. Each spouse, however, must present their own returns and decide how to divide the refunds when they filed separately.

Spouses should also remember that there may be tax consequences for assets they receive in property division. This should be considered in their negotiations.

Insurance

Many insurance policies could have been prepaid, and a spouse may be unaware that their soon to be ex possessed certain policies. Life, disability, casualty, and other prepaid insurance policies should be valued and considered for property division.

Timeshares

The amount owed on a resort timeshare may exceed its present value. In that situation, spouses should decide whether they want to take over the burden of keeping the timeshare or eliminating the responsibilities and complications of ownership. One spouse can assume the debt and take over the timeshare or they can continue joint ownership, sell it, or allow it to go into foreclosure.

Dues and subscriptions

Discounts are often offered for two and three-year memberships and magazine subscriptions. A spouse may have made substantial prepayments from marital or joint funds to avoid future payments from their separate funds. The other spouse may be entitled to some compensation to equalize those payments.

An attorney can provide advise on identifying and addressing these and other overlooked assets. Lawyers can help you seek a fair and reasonable property settlement.