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Two Sigma co-founder Overdeck defends $723m divorce settlement offer
The proposed deal centers on valuing his Two Sigma stake, with Laura Overdeck seeking 35% of an estimated $6.2bn interest versus his $4.9bn valuation and a roughly $600m payment tied to appreciation.
Two Sigma Investments co-founder John Overdeck defended a proposed $723m divorce settlement offer for his wife Laura during their trial in New Jersey Superior Court in Newark, arguing that the offer fairly divides wealth built over their 24-year marriage, according to testimony reported by Bloomberg.
Overdeck said Laura should receive part of the increase in the value of his Two Sigma interest, but he disputed her demand for 35% of his stake. Laura’s valuation of his interest is about $6.2bn, while Overdeck put his holding at closer to $4.9bn and said a payment of roughly $600m represents a reasonable share of appreciation, with the rest of the settlement covering other marital assets.
He also said the overall offer includes assets already withdrawn by his wife, including about $75m taken from their accounts shortly before she filed for divorce in January 2022. Overdeck further addressed his compensation from Two Sigma, stating he received approximately $685m from the firm during the marriage and describing the pay arrangement as heavily negotiated and agreed in advance using executive-compensation measures.
Overdeck argued that his compensation reflected his business contribution even though he said he was not responsible for most day-to-day work across the firm. He testified that although he was the firm’s highest-paid individual, his compensation was no more than 10% of the total paid out by Two Sigma, and he pointed to broader hedge fund industry expansion, technology advances, and rising equity markets as drivers of growth in his wealth.