For divorcing couples, the marital home, bank accounts and retirement funds are typical examples of property and assets that must be divided. But there are other important hidden assets that spouses should look into and address while negotiating their property and asset division.
Restricted stock
Restricted stock units are a type of deferred compensation for executives related to the length of their employment or the company’s or executive’s performance. Compensation may be set up in numerous ways and corporations constantly redraft terms.
Non-earning spouses should try to account for those assets. They need to determine whether their executive spouse earned restricted stock units during their marriage and if these will be cashed out after their divorce.
Usually, restricted stock units may not be transferred but other property may be divided to make up the difference for that asset in a divorce. Spouses should also learn whether they may freeze those assets on a date based upon the market.
Pensions
Spouses who are federal or Maryland government employees or employed by certain corporations may have pensions. The spouse who is not the pension holder should assure that this future income, which was likely earned during their marriage, is properly accounted for, and divided.
A pension valuation may be needed. Pension payments can change from their estimates or private companies that paid pensions may go into bankruptcy.
Military benefits
Spouses married to servicemembers may not hold on to their military benefits, such as health care, after their divorce. Their benefit eligibility may depend on the 20-20-20 rule.
Under this rule, the spouse had to serve in the military for at least 20 years and the marriage and military service had to overlap by at least 20 years. Completing the correct paperwork is also important to assure that important rights are not lost.
Cryptocurrency
There are many ways to hold Bitcoin and other forms of cryptocurrency. This asset may be difficult to trace because cryptocurrency may be held with a major investment company or individually like stock certificates. Valuating cryptocurrency may be complicated because it is a still-emerging investment and may be volatile.
Stay organized
Documenting all your assets, as well as where and how they are owned, may help you prepare for divorce. An attorney can help you locate assets and prepare options that meet financial needs. They can also help assure that your rights are protected in divorce negotiations and proceedings.