Your private club membership is more than just a social perk. It is a valuable marital asset that courts consider during a Missouri divorce. However, deciding who keeps it or what happens to it can be far more nuanced than many couples anticipate. Thus, understanding why these memberships hold such value is a prudent first step.
What makes a club membership valuable?
Private club memberships usually give you access to exclusive golf courses, country clubs, business networks and social events. Additionally, they often cost thousands of dollars to join and maintain.
That is why in a Missouri divorce, courts often treat these memberships as marital property and distribute them equitably just like your home or retirement accounts. Because the value can be substantial, how you divide the membership depends not just on its worth, but also on the contractual obligations your club has in place.
How your club’s bylaws can limit your options
Before exploring your options asset division, you need to review your club’s bylaws first. This is because some clubs do not allow transfers. Meanwhile, others usually restrict membership to the primary person listed on your family’s account. Therefore, these provisions can substantially influence the outcome of your divorce settlement. But once you know what the club allows, you can evaluate the choices available to you.
Three ways you can split your club membership
While your club’s bylaws set the boundaries, you and your spouse still have choices. Here are three common ways to divide a private club membership during your divorce:
- Offset with other assets: One spouse retains the membership as the other walks away with comparable assets, including cash, home equity or retirement funds.
- Sale or transfer: If the club permits it, you can surrender the membership for a refund or transfer it and split the proceeds.
- Termination: If neither spouse wants the membership or finds the maintaining costs too high, both parties can agree to cancel it.
Each option carries distinct financial and legal ramifications. Choosing the right one depends on your specific circumstances and that decision can have an enduring impact on your life after divorce.
Protect your network and your fair share
Your club membership represents more than monetary value. It connects you to your professional circle, your social life and your daily routine. As you go through your divorce, understanding how courts value and divide these memberships positions you to make well-informed decisions. Hence, having the right support at the right time can mean the difference between relinquishing a valuable asset and securing what you rightfully deserve.
