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Stocks and divorce: To divide them or not?

On Behalf of | Oct 14, 2021 | Family Law

Dividing stocks during your divorce can be tricky, but it can also be an excellent way to keep your situation financially viable. If you have no stocks but your spouse has thousands of dollars or more in stock options, then it may be time to look into obtaining some of those stocks for yourself.

Dividing stocks in divorce isn’t always simple, but there are methods of doing so. Here are three potential options for handling your stocks during your divorce.

  1. Dividing your stocks by selling them

The first and easiest way to divide your stocks is simply to sell them and divide the profits. If you do this, you can divide your profits on your taxes, so that you can minimize the overall tax owed. You may also be able to reinvest in the same stocks or others if you wish.

  1. Dividing stocks into separate accounts

Another option is to divide your stocks into separate accounts. You have the ability to transfer stocks out of your name and to another person. If you have a brokerage, the brokerage firm can do this transfer for you once you know how many stocks need to be moved.

  1. Negotiate for your spouse’s share

The next option is to negotiate for your spouse’s share. You may want to do this if your spouse isn’t interested in using stocks or has their own without the need to obtain yours.

If they don’t want the stock, then your option could be to buy their share or trade away a different item of equal value. For example, they might be entitled to $100,000 in stock, but if you’re willing to give up your share of a $200,000 home, assuming a 50-50 split, then that could work.

Property division is always a tricky topic for divorcing couples

Property division is a difficult topic, and it can be made more frustrating by the kinds of assets you hold. Fortunately, most assets can be easily divided, because there are laws to help in these circumstances. Getting good support and learning all the options will help you find the best solution for resolving your property division issues.

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