Two Sigma Investments' billionaire co-founder John Overdeck said the $723 million he is proposing to give his wife Laura to resolve their divorce is "fair" based on his compensation from and stake in the quantitative hedge fund. Testifying Wednesday during the couple's contentious divorce trial, Overdeck said his wife of 24 years deserved some of the appreciation in his stake at Two Sigma but much less than she's seeking.

Laura Overdeck is asking for 35% of the value of his interest, which she pegs at $6.2 billion. The trial at New Jersey Superior Court in Newark has laid bare the complexities of valuing a founding partner's stake in a private quantitative trading firm. Overdeck argued the proposed amount reflects both his contributions and the firm's growth.

The dispute highlights how dividing wealth tied to illiquid hedge fund holdings can become a protracted legal battle. Overdeck's compensation and equity in Two Sigma remain central to the case, with both sides presenting starkly different valuations of his interest in the firm.