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What happens to your stock during a divorce?

Thu 18 Oct, 2018 / by / General

Divorce with high-assets can be hard to navigate. If you and your ex have considerable finances and resources, it can take a long time to figure out how best to divide everything. When other investments come into play, such as stocks and bonds, this can further complicate the process as it adds another layer of complexities to the situation.

While stocks are a sound investment, figuring out how best to divide these entities might not be as clear-cut as other finances.

How are stocks defined in divorce?

First you will have to determine whether your stocks are marital or separate property. Only marital property is dividable during divorce. However, in most states, separately owned property that increased in value during your marriage can be considered marital property, too.

Marital property involves any property or assets that were acquired during the marriage. This includes real estate and investments including stock options, restricted stocks and brokerage accounts.

These laws vary from state to state so it is safest to consult your divorce attorney about the specific laws that apply to you and your situation.

What are your options?

Based on this, you have a few options. You can sell your investments and split the profits evenly. However, this can present tax consequences. Another option is to split the investment holdings in half.

Fortunately, a skilled family law attorney will know what to do in these situations. If you are unsure how to proceed or want the process taken care of for you, consult your divorce attorney and they can sort everything out with little stress on you and get you the best deal based on your situation.