Divorce proceedings not only mark the dissolution of a high-net-worth marital relationship but also signal the onset of complex financial disentanglements, including dealing with investments like stocks.

If you find yourself wondering what happens to your stocks when you get divorced, you’re not alone. RTRLAW wants to help you understand the essential aspects you need to know in navigating the division of stocks in a divorce proceeding.

Why Does The Date of the Stock Acquisition Matter?

Stocks are digital assets that represent a share of ownership in a company and come with their own set of complexities when it comes to division during a divorce. While some stocks might have been purchased before the marriage, other investments could have been bought during the marital period. Discerning between the two can often be a detailed process.

In the legal landscape of divorce, the date when stocks were acquired holds substantial weight. Generally, stocks acquired during the marriage are considered marital assets, and are subject to equitable distribution. Stocks acquired before marriage are viewed as separate assets, sheltered from division. It’s important to demarcate the stocks in these two categories clearly to facilitate a fair distribution between spouses.

Once the stocks are categorized, the next vital step is to determine the current value of these assets. The fluctuating nature of the stock market means that the value of stocks can vary dramatically over short periods. Engaging financial experts to conduct a precise valuation based on market conditions at the time of separation can be a prudent approach.

Create an Investment Strategy Together

Splitting stocks doesn’t always mean selling them off. Depending on the nature of the stocks, it might be beneficial for both parties to hold onto them for a more opportune selling point in the future. This requires a collaborative approach and a strategy that considers the market forecasts and the financial goals of both parties.

Given the complexity surrounding the division of stocks, seeking the guidance of financial advisors alongside experienced high-asset divorce attorneys can be the beacon of light guiding you through uncharted financial waters. This multifaceted approach ensures fair distribution strategy that considers all potential repercussions, ensuring a smoother sail through the turbulent times of a divorce.

Get Proper Legal Guidance During Your Divorce

Dividing stocks in a divorce requires understanding several steps, including looking at when they were acquired, their value, planning, and tax implications. Achieving a fair split is complex and often requires expert guidance.

As you find yourself at this crossroads, arming yourself with information and legal guidance can be your trusted allies in protecting your financial interests and securing a future that holds promise and stability.

For legal assistance with dividing your stocks in a divorce, contact RTRLAW’s knowledgeable family law attorneys for a no-obligation case review at 1-833-HIRE-RTR (1-833-447-3787).