About half of the American population holds stocks which might become a relevant factor if you are going through a divorce and are dividing up your assets. These stocks might come from a retirement account or you might have purchased them on your own. However, the more complex the investments, the more help you will need from a divorce attorney when dividing your assets.
Separate Vs. Marital Property
One of the questions you must answer is whether the investments will be considered separate or marital property. This depends on the state in which you live. In some states, your partner, your attorneys, and the state will have to determine how an investment must be classified.
How to Divide Investments
Typically, you will have the option between dividing your stocks, or selling all of the stocks and dividing the profits generated by selling them. If you are selling the stocks, you will pay less in taxes. If you divide the stocks, they will usually be divided into two separate accounts.
You or your spouse might wish to keep the entire share. If that is the case, you can negotiate and your spouse might receive something else such as a greater share of the equity of the house. You may choose to simply buy the share from your spouse.
If you have earned a stock from work prior to becoming married, you will need to determine if the stock will be considered a community asset for the state in which you reside.
Stock Options
Stock options can be complicated because they do not have a set value and you instead have the option to purchase the stock in the future. The stock option might be more valuable than expected if the company is more valuable in the future.
Hidden Assets
One way a divorce attorney can assist you is by helping you track down a hidden investment that is paying dividends. For example, your partner might have a savings account you are not aware of and dividends are being deposited into this savings account.
Checking accounts and canceled checks can be used to locate a hidden investment property. Throughout the discovery portion of your divorce, you must request copies of all financial accounts so you can make sure that there are no assets your spouse is keeping from you that you would be entitled to in a divorce. Both you and your attorney must take a proactive role in looking for assets.
For more information, reach out to a company such as Hart Law Offices, PC.
Share1 December 2021
There are so many legal situations that you can find yourself involved with, but do those situations really require that you hire an attorney? Some instances you may not need an attorney working with you, but in other situations, an attorney is definitely a necessity. This blog contains tips and advice for working through the different elements of the legal system. You will find information that can help you determine if/when you need to hire an attorney to represent your best interests. Knowing this information can help you avoid the costly mistake of taking on the legal system without someone who knows how the system works.
