Laura Overdeck has returned to court in New Jersey seeking a larger settlement from her estranged husband, billionaire hedge fund manager John Overdeck, in one of the state’s biggest contested divorce cases.
The 56-year-old rejected a proposed payout worth more than $600 million and is pursuing a share of John Overdeck’s stake in Two Sigma, the investment firm he co-founded in 2001.
Her lawyers argue that she should receive 35 per cent of the value of his holding because the business became a marital asset during their 20-year marriage. The couple married in 2002 without a prenuptial agreement.
The valuation of the stake is sharply disputed. John Overdeck’s legal team puts it at $4.5 billion, while Laura’s lawyers value it at $6.2 billion. Two Sigma itself has been valued at $80 billion.
Two Sigma valuation at centre of divorce hearing
The couple appeared before family court Judge Bruce Buechler in Newark on Tuesday as the court heard evidence about the firm’s assets. John Overdeck had asked for the courtroom to be cleared while his financial expert, Todd Povlich, gave detailed evidence.
The judge declined to close the hearing entirely but agreed that parts of the testimony involving potential trade secrets should take place in private. He said the evidence could cover the firm’s investments and the way its value was calculated.
During the closed session, Povlich was expected to explain how he had reached his valuation and assessed each of Two Sigma’s 20 entities.
Laura’s lawyers questioned why the evidence needed to be kept confidential, pointing out that John’s side had already made its valuation of the company public. The hearing was the 10th day of proceedings concerning the hedge fund and its value.
John Overdeck’s lawyers maintain that Two Sigma should not be treated as a marital asset because it was founded two years before the couple married. His lawyer, Jonathan Wolfe, said the company had already carried out substantial work and managed hundreds of millions of dollars before the marriage.
Laura’s attorney, Therese Lyons, argued that Two Sigma was only a “concept” at that stage and did not begin trading until after the couple had married. She said the company had grown from a value of less than $1 billion to $80 billion during the marriage.
Laura’s lawyers have also alleged that John deliberately concealed assets and had planned for a divorce. They claim he had “methodically and strategically” protected his wealth and was “scheming” to reduce the value of the marital estate.
John’s lawyers reject that position. They have said he earned $685 million during the marriage, all of which was held in a joint bank account, but that he had already built up billions before the couple wed.
In August, his legal team said he was prepared to provide Laura with $723 million in tax-free cash, describing the offer as more than enough to support the lifestyle the couple had enjoyed. Laura argues that she should receive substantially more if she succeeds in securing a stake in Two Sigma.
She is also seeking hundreds of millions of dollars in Treasury bonds held in a trust, as well as equal control of the couple’s family foundation. If she does not obtain control, her lawyers want John to transfer half of its value to a charity of her choice. The foundation held $920 million in assets in 2024, according to a tax filing referred to in court.
Laura was barred from giving evidence after the judge accused her of alleged wrongdoing, including hacking into John’s computer, entering his post office box and deleting evidence from her phone. The allegations have not been established as facts.
The couple have three children and raised their family in a mansion in Short Hills with the help of a full-time nanny and a housekeeper. Laura filed for divorce in 2022.
John, who previously worked at investment firm DE Shaw & Co and helped Jeff Bezos launch Amazon, recently bought a $72 million waterfront property in Palm Beach, Florida. Laura studied astrophysics at Princeton University and later founded Bedtime Math, a non-profit organisation she continues to oversee.
The courtroom was expected to reopen to the public on Wednesday, with further evidence from another financial expert due to be heard later this month.
