How is Stock Divided in a Divorce?

When going through the complex divorce process, it can be difficult to know how to divide property fairly and respectfully. While some assets may be easy to divide, such as physical property, others may be trickier. Pensions, retirement assets, and stocks can be challenging to divide between spouses without the help of a legal professional.

A seasoned attorney at Moskowitz Law Group can help split up investment assets, such as stocks, during your divorce proceedings. Call today to learn more about how stock is divided in a divorce.

How Can You Split Stocks Fairly?

One way to split stocks equally is to sell them and divide the profit in half. However, this poses a problem in many settlements as stocks are long-term investments, so one party may not be willing to sell at a given time.

Another option is to divide the shares in half without first selling them. If spouses have equal shares in different investments, one party could take the shares in one investment while the other party takes the shares for another investment.

In some cases, an individual receives stock in their name from an employer. These stocks are still considered marital property because a spouse earned them during the marriage. When this occurs, the party who does not hold the stock could be able to receive a cash value or other assets in exchange for their ex-spouse keeping all of the shares.

Not All Stock is Factored into a Divorce

If stock was earned before the marriage, it could be excluded from the divorce settlement provided that the other party signed a pre-nuptial or post-nuptial agreement. If stock was gifted to an individual and remains titled in their name, it will most likely remain as separate property. If the ownership of the gifted stock is contested, credible evidence must be provided to the court that the stock was, in fact, gifted. A knowledgeable attorney can help an individual establish ownership of stock assets during divorce proceedings.

Discuss Stock Division with a Seasoned Divorce Attorney

Stocks have short and long-term value, so dividing them in a divorce can get complicated. If you are going through a divorce that involves the division of stock, reach out to the skilled legal team at Moskowitz Law Group. We can guide you through the property division process and help you get your fair share of your assets. Call today to set up a consultation.