Skip to headerSkip to main contentSkip to footer
Get our Free E-newslettersGet our Free E-newsletters
Kiplinger logoLink to homepage
Get our Free E-newslettersGet our Free E-newsletters
Subscribe to Kiplinger
Subscribe to Kiplinger
Save up to 76%
Subscribe
Subscribe to Kiplinger
  • Store
  • Home
  • Investing
  • Retirement
  • Taxes
  • Personal Finance
  • Your Business
  • Wealth Creation
    • Podcasts
    • Economic Outlooks
    • Tools
    • Kiplinger's Personal Finance Magazine
    • The Kiplinger Letter
    • The Kiplinger Tax Letter
    • Kiplinger's Investing for Income
    • Kiplinger's Retirement Report
    • Store
    • Manage My E-Newsletters
    • My Subscriptions
Skip advert
  • Home
  • Divorce
Divorce

4 ‘Hidden’ Assets You’ll Need to Account for in Divorce

Untangling family finances during divorce can take some digging. Your spouse may have assets that aren’t top of mind (restricted stock or Bitcoin, anyone?), and they might be tough to value or split up.

by: Tonya Graser Smith, Board Certified Specialist in Family Law
March 3, 2021
A pink piggy bank's face peeks out from between the branches of a bush.

Getty Images

Skip advert

The house. The bank accounts. The retirement funds.

For those going through divorce, these are the usual suspects when it comes to the division of assets. But there’s more, including what I call the “hidden assets,” which are those assets you and your spouse have that you might not think about every day.

Here are four so-called hidden assets that you must dig into and address when getting divorced.

  • 5 Ways to Survive Divorce, Emotionally and Financially
Skip advert
Skip advert
Skip advert

1 of 4

1. Restricted stock units

An executive holds a briefcase open to show it's full of bundles of money.

Getty Images

Skip advert

If you or your spouse has an executive-level corporate job, in banking or finance, for example, chances are you have restricted stock as part of that income stream. While this is deferred compensation, it’s different from the more well-known and better understood annual bonus. Restricted stock can be structured in countless ways, and some corporations are constantly rewriting their terms. But the gist of it is that it’s future income that is tied to something like length of employment or individual or company performance.

If you are the non-earning spouse when it comes to these assets, you will want to account for the fact that some restricted stock units could have been earned during your marriage and will be due to be cashed out after your divorce. While restricted stock typically cannot be transferred, other property can be divided in such a way as to account for those assets. However, you should also know that different states treat restricted stock units differently, so it’s not necessarily a bird in the hand.

You will want to talk with your attorney about when to freeze these assets in time – based on the market. You might also want to hire an additional expert like a Certified Divorce Financial Analyst® practitioner, which is a financial planner with expertise in divorce.

  • How to Divorce a Millionaire (Tip: Watch Out for Executive Compensation)
Skip advert
Skip advert
Skip advert

2 of 4

2. Pensions

A man reads a document titled "Pension Statement."

Getty Images

Skip advert

If you or your spouse is a state or federal employee, you most certainly have a pension to consider. Companies in other industries also offer pensions – or have in the past, so it is important to know if any exist in your household. If you aren’t the pension holder, you will want to make sure this future income, which was essentially earned during your marriage, is appropriately accounted for and divided.

Another thing to know is that the estimated payment on the most recent pension statement is just that – an estimate. The future monthly payment could be more or less than what is estimated. And if the company offering the pension has since filed for bankruptcy, this could also affect what you or your spouse might expect to collect. Either way, you might need to hire an expert to do a pension valuation.

  • Pension or Lump Sum? Compare Payouts and Options Before You Decide
Skip advert
Skip advert
Skip advert

3 of 4

3. Military benefits

A picture from the knees down of a platoon of soldiers in fatigues.

Getty Images

Skip advert

If you are a non-military spouse of a member of a branch of the military, you don’t necessarily get to keep your military benefits, including health care, after divorce. The rule to know here is the 20-20-20 rule. In order for you to keep getting benefits, your spouse has to have served at least 20 years, you have to have been married for at least 20 years and your marriage and the military service has to overlap by at least 20 years.

Also key to keeping military benefits: filling out the right paperwork and not actively waiving any rights. Make sure to hire a divorce lawyer who has experience with military couples.

  • 10 Best Financial Benefits for Military Families
Skip advert
Skip advert
Skip advert

4 of 4

4. Bitcoin and other cryptocurrency

bitcoin

Getty Images

Skip advert

If your spouse has invested in Bitcoin and other cryptocurrency, you need to know there are a lot of different ways to hold it – with a major investment company like Schwab or individually as you would with stock certificates –  and it can be difficult to trace. It’s also a still-emerging kind of investment and can be volatile. Bottom line: You might need to bring in a professional who has expertise in valuating cryptocurrency.

Here’s a final thought: It’s always a smart idea to keep track of all of your household assets and where or how they are owned, even if it’s in a simple Word document on your computer. Maybe your spouse is an active day trader; you’d want to make note of that, especially if you’ve heard hot names like GameStop bandied about.

And divorce doesn’t have to be looming for you to get organized in this way. This effort will pay off when other life events occur – like one spouse dies or you are drafting or updating your will.

  • Tricky Divorce Issue: How to Divide 401(k)s, IRAs and Annuities
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

About the Author

Tonya Graser Smith, Board Certified Specialist in Family Law

Founder, GraserSmith, PLLC

Tonya Graser Smith is a Board Certified Specialist in Family Law, licensed North Carolina attorney and founder of GraserSmith, PLLC, in Charlotte, N.C. She focuses her practice on divorce, child custody, child support, alimony, equitable distribution, prenuptial agreements and other family law matters.

Skip advert
Skip advert
Skip advert
  • wealth creation
  • personal finance
  • Divorce
Share via EmailShare on FacebookShare on TwitterShare on LinkedIn
Skip advert
Skip advert
Skip advert
Skip advert

Recommended

HSAs Make Health Care More Affordable
health savings accounts

HSAs Make Health Care More Affordable

Tax-advantaged health savings accounts allow you to save for a broad range of short-term and long-term medical expenses.
May 26, 2022
Don’t Want to Leave Money to Your Kids? You’ll Probably Change Your Mind.
estate planning

Don’t Want to Leave Money to Your Kids? You’ll Probably Change Your Mind.

How much is too much to leave your children? You may be surprised.
May 26, 2022
You May Be Worrying About the Economy Too Much
economy

You May Be Worrying About the Economy Too Much

Buck up. Yes, we are facing some crises right now, but once you put things into perspective, you’ll see things may not be as bleak as you fear.
May 25, 2022
Is Securities-Based Lending a Good Idea?
investing

Is Securities-Based Lending a Good Idea?

Securities-based lending may be a quick way to lay your hands on some cash, but you should be aware of the potential for risk.
May 25, 2022

Most Popular

Why Are Gas Prices Still Going Up?
spending

Why Are Gas Prices Still Going Up?

The cost of a gallon of gas is heading back toward its March highs. What’s driving the resurgence, and will gas prices go down anytime soon?
May 23, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Retirement Income Shouldn’t Depend on the Market; It Should Depend on Math
retirement planning

Retirement Income Shouldn’t Depend on the Market; It Should Depend on Math

The math isn’t as tough as you might think. It all starts with dividing your assets into three different buckets.
May 23, 2022
  • Customer Service
  • About Us
  • Advertise With Us (PDF)
  • Privacy Policy
  • Cookie Policy
  • Kiplinger Careers
  • Accessibility
  • Privacy Preferences

Subscribe to Kiplinger's Personal Finance

Be a smarter, better informed investor.
Save up to 76%Subscribe to Kiplinger's Personal Finance
Do Not Sell My Information

Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site www.futureplc.com
© Future US LLC, 10th floor, 1100 13th Street NW, Washington, DC 20005. All rights reserved.

Follow us on InstagramFollow us on FacebookFollow us on TwitterConnect on LinkedInConnect on YouTube