Country club memberships often serve as more than just recreational perks. During Washington State divorce processes, they can be treated as valuable marital assets, particularly when both spouses have enjoyed the benefits of a membership during their marriage.
Partially because these memberships are often associated with substantial initiation fees, ongoing dues and sometimes resale or transfer value, determining how to handle them requires careful consideration under state community property law.
The basics of marital asset division
Washington State honors a community property system, which generally means that assets acquired during marriage belong to both spouses equally. If a country club membership was purchased during a couple’s marriage with marital funds, it is likely to be considered community property. This means that its value will likely need to be divided fairly and equitably, which could include awarding the membership to one spouse while offsetting its value with other assets.
On the other hand, if a membership was acquired before marriage or maintained with separate funds, it may be considered separate property. However, even then, complications concerning ownership and/or possession can arise if community funds were used to pay ongoing dues or if the membership increased in value during the marriage.
With this said, there may be concerns related to a membership that are beyond each spouse’s control, which need to be addressed, even if the division of its value isn’t disputed by either individual. Consider the transferability of a membership, for example. Some country clubs allow memberships to be transferred or sold, while others restrict ownership to individuals or families and prohibit splitting them between parties.
If a membership is not transferable and control of that membership is an issue that spouses can’t resolve on their own, courts may award it to one spouse while requiring that spouse to buy out the other’s interest. The value assigned to the membership may be based on the original purchase price, current market value and the lifestyle benefits associated with club access. This valuation can understandably become a point of contention in high-asset divorces where memberships are part of a larger portfolio of luxury assets.
In addition to financial considerations, courts may also weigh practical concerns in contentious divorce scenarios. For example, if one spouse has been the primary user of the membership for business networking or social reasons, awarding the membership to that spouse may make more sense. In some cases, spouses may even agree to continue sharing their membership temporarily, though this can be difficult to manage when emotions are high and each person is trying to establish independence post-divorce.
There is no right or wrong way to manage a country club membership during divorce. The fairest and most reasonable path forward is going to be unique for every couple. This is just one of the many reasons why consulting with a skilled legal team – that can help spouses to make informed choices and to pursue their best interests accordingly – is generally wise.
