Couples associate the term “assets” with things like the marital home, automobiles, furniture, or checking and savings accounts. However, there are additional assets that you need to consider. You should consider splitting bonuses, stock options, investment properties and more.
Larger estates have assets that complicate divorce. In fact, one man was found hiding $500,000 in Bitcoin, something that is a growing concern.
Accounting for all additional assets may require:
- Forensic accountants
- Appraisals
Splitting additional assets in a divorce starts with knowing which assets to consider.
Schedule a consultation with us to discuss your divorce.
We have offices in Santa Rosa, Petaluma and Ukiah to better meet your needs.
What Are Additional Assets to Consider When Divorcing?
Uncovering assets in a divorce isn’t as simple as reviewing your bank accounts and property that you own together. You’ll also need to consider:
- Bonus Income
- Seasonal Income
- Stock Options
- Restricted Stock Units
- Retirement Accounts
- Taxable Investment Accounts
- Vacation Homes
- Investment Properties
- Digital Assets
- Credit Card Rewards
- Timeshares
- Memberships and Clubs
Even if you don’t suspect your spouse of hiding assets, the larger the estate, the more complex it can be to verify the assets that you are entitled to in a divorce. Forensic accountants can help uncover assets that will need to be:
- Identified
- Valued
You need to identify all assets that must be split during the divorce proceedings to get your fair share of the estate. Even bonuses or seasonal income may be divided.
Splitting Bonuses in A Divorce: How Is Bonus and Seasonal Income Divided in a Divorce?
Splitting bonuses in a divorce or even seasonal income is possible, but in most cases, the income must be earned prior to the separation. For example, if your spouse earned a bonus last year and you separated today, it would be considered a marital asset even if it was received after your separation.
If your partner received a prepaid bonus, the bonus may not be a fully shared asset because it may need to be repaid if the spouse leaves their position prematurely.
In this case, the bonus may or may not be split.
Seasonal income earned during the marriage may be split, too. If seasonal income or bonus income is an issue, it can impact child and spousal support and cause complications because low-income months can leave the parent or spouse in arrears.
How Are Investment Accounts Divided in a Divorce?
Typically, California treats investment accounts, such as retirement or brokerages, as community property if they are:
- Obtained during marriage (and not by inheritance)
- Comingled with marital assets (like marital income)
In this case, each spouse will be entitled to a division of these assets upon divorce.
How Are Stock Options or RSUs Treated in a Divorce?
Splitting bonuses in a divorce is one thing, but what about stock options or RSUs? Things get a little more complicated here.
In California, individuals typically retain 100% ownership of separate property in a divorce. However, during marriage, earnings are considered community property and divided equally when a couple separates.
For this reason, vested interests are treated differently, and splitting stocks in a divorce is rarely simple and straightforward. It will largely depend on whether:
- Stock options or RSUs (restricted stock units) were granted before the marriage but vested during the marriage, OR
- They were granted during marriage but vested after the separation
The date of the separation will help determine how vested interests are treated. Courts will then use a special formula to determine how any stock options or RSUs considered community property will be divided.
What Should I Do If My Spouse Is Hiding Assets and Income During Our Divorce?
How Should Vacation Homes and Investment Properties Be Separated in a Divorce?
When it comes to real property, such as investment properties and vacation homes, the treatment of these assets will largely depend on when they were acquired.
- If the property was purchased during the marriage, it will generally be considered community property and subject to division – even if only one spouse is on the title and maintained the property.
- If the property was purchased prior to marriage but marital income was used to maintain it, a portion of the property’s value may be subject to division. In this case, the asset was acquired before the marriage, but it was commingled upon marriage.
- If the property was purchased prior to marriage and there was no commingling, it may be considered separate property and may not be subject to division.
- Property that was gifted or inherited to one spouse is generally considered separate property.
In many cases, vacation homes and investment properties are considered community property in a divorce and are divided equally.
Divorcing couples have a few options to divide these assets:
- Sell the property and split the proceeds. The simplest option is to get the property appraised, sell it at the current market value and split the profits.
- Trade for an equivalent asset. If one of you wants to keep the property and maintain sole ownership, the interested party can make an offer, such as trading for an equivalent asset or buying out the other spouse.
- Maintain ownership and continue operating the property together. If neither of you want to sell the property and you can maintain an amicable relationship, you can agree to retain ownership and manage the property together.
The right solution for you and your former spouse will depend on a variety of factors and your individual circumstances. Your attorney can advise you of your options and help you come to an agreement that works for all parties.
How Does an Experienced Attorney Approach the Division of Additional Assets and Money in a Divorce?
Splitting bonuses in a divorce and other additional assets can be complex and, in some cases, emotionally charged.
An experienced attorney will get to know you and your individual situation to determine which course of action is in your best interest. Your attorney will also investigate to determine when and how these assets were acquired, allowing you to potentially maintain ownership of any cash or properties considered separate property.
At Wine Country Family Law, P.C., we know that property division is rarely easy. Our experienced attorneys will help you understand your options and negotiate a fair division that works in everyone’s favor.
Contact us today to schedule a consultation and discuss concerns about your additional assets.
