Two Sigma Co-Founder Defends $723M Divorce Offer

John Overdeck, co-founder of quantitative hedge fund Two Sigma, defended a $723 million divorce settlement offer at a trial in New Jersey Superior Court in Newark. He testified the offer fairly divides wealth accumulated during the couple’s 24-year marriage and rejected his wife Laura Overdeck’s demand for 35% of his stake.

Laura Overdeck values his holding at about $6.2 billion and seeks 35% of that figure. Overdeck testified he values his stake at roughly $4.9 billion and said a payment of about $600 million “represented a reasonable share of the appreciation in his Two Sigma interest,” with the remainder of the $723 million covering other marital assets.

The proposed package includes assets Laura withdrew from joint accounts shortly before she filed for divorce in January 2022. Overdeck acknowledged about $75 million removed from their accounts is part of the offer.

Overdeck addressed compensation he received from Two Sigma during the marriage, estimating about $685 million in payouts. He told the court the compensation arrangement was “highly negotiated” and substantially larger than what other employees received, and that the payments reflected terms agreed in advance.

He disputed that the increase in his Two Sigma wealth was solely the result of his personal efforts, pointing to industry growth, advances in technology and rising equity markets. He noted Two Sigma was founded one year before the couple married; at the start of the marriage the firm managed under $1 billion, and testimony indicated it now oversees more than $80 billion.

Overdeck added his compensation represented no more than 10% of total distributions by the firm. The valuation of his interest and the appropriate division of assets remain central issues in the ongoing trial.