When people think about dividing assets during a divorce, they often focus on their family home, retirement accounts, investment portfolios and bank balances. To that end, some valuable assets may receive far less attention than they deserve. Take, for example, a country club membership. Depending on a divorcing couple’s circumstances, a country club membership may represent financial value and practical significance that should not be overlooked during divorce proceedings.
Many country clubs require substantial initiation fees, ongoing dues and assessments. In some cases, memberships can be sold, transferred or refunded under certain conditions. Even when a membership does not have a readily identifiable resale value, it may still represent a marital asset that was acquired or maintained using marital funds. If you and your spouse are going your separate ways, it is important not to treat your family’s country club membership as an afterthought during your divorce negotiations or litigation.
Potential paths to resolution
The treatment of a country club membership – in either a cooperative or a contentious divorce scenario – often depends on the club’s governing documents and the nature of the membership itself. Some memberships are owned directly by a member and may carry transfer rights. Others are more limited and terminate when a member leaves the club. Understanding exactly what rights are associated with your family’s particular membership is an important first step.
Divorcing spouses should also consider how membership-related expenses will be handled moving forward. Annual dues, assessments, dining minimums and other costs can become significant financial obligations. Determining whether one spouse will retain the membership and assume future expenses is often part of a broader property settlement discussion.
In high-asset divorces, it is common for smaller assets to receive less scrutiny because larger financial issues dominate negotiations. However, overlooking a country club membership can create disputes later if its value, transferability or ongoing costs are not properly addressed during the divorce process. Therefore, devoting some effort to clarifying this particular asset may be wise.