September 1, 2012
A few states place a value on degrees such as the medical degree, the dental degree, or the law degree. In states that don’t value degrees we can look at the value of employment in a different way.
Some corporate employees have many perks included with their employment, which we call career assets. These career assets can include:
- insurance (life, health, disability)
- vacation and sick pay
- autos, gas and repairs
- stock options
- pension and retirement plans
- promotions, job experience, seniority
- professional contacts
- additional education
Many of our clients will be those from a marriage in which the husband is the dominant wage earner. Sometimes the wife has put the husband through school or helped him become established while abandoning or postponing her own education. She may have quit her job to move from job to job with him. Together they have made the decision to spend the time and energy to build his career training with the expectation that she will share in the fruits of her investment through her husband’s enhanced earning power. Over time, he has built up career assets, which are part of what he earns even though they may not be paid out directly to him.
Even in two-income families, one spouse’s career often takes priority over the other’s. Both spouses expect to share the rewards of that decision.
Case study of Brad and Sheila
Brad, an artist, was married to Sheila, a manager in a high-tech firm. They had two young children. Brad was the stay-at-home Dad to care for the children as Sheila was earning a good salary at her corporation. They had remodeled the loft over the 3 car garage for Brad’s art studio. Brad loved it! He was able to care for the children as well as having his art studio at home.
Soon, Sheila was promoted to VP of marketing which involved a lot of travel. During one trip, she met someone else and started an affair. Brad found out about it and even though they tried talking it through with a counselor, they decided to divorce.
Sheila had benefits at work that included:
- her car with gas and repairs paid for,
- tickets to the Broncos, Avalanche, andRockiesgames,
- membership at the country club,
- membership at the health club,
- access to the company cabin in the mountains, and
- health and dental insurance completely paid for.
Brad had to make payments on his car and buy his gas. If he wanted to see a football game, he had to buy a ticket. If he wanted to work out at the health club, he would have to pay for it.
How do you value Sheila’s benefits? In this case, the Financial Divorce Practitioner added to Sheila’s income the value of any benefit that Brad, if he wanted the same benefit, would have to pay for, such as the car, gas, tickets, etc.
Don’t overlook the value of career assets. They may not be immediately visible on an Asset Worksheet, but they can be worth a lot.
