Investing in stocks can be a smart financial move. People with enough income can acquire stocks that slowly appreciate in value. If the businesses succeed, those who hold stocks may also receive dividend payments. Quarterly revenue and slow value appreciation make stocks a smart investment for people thinking about the future.
Many married couples planning for retirement and beyond invest in stocks. They may then have to find a way to address those investments when they divorce. What do couples generally need to know about dividing stock in an upcoming divorce?
Stock might be marital property
Sometimes, investment accounts are in the name of only one spouse. That spouse might wrongfully assume that their stock is separate property that they do not need to divide. However, any stock acquired during their marriage or with marital income is likely subject to division when the spouses divorce.
The name on the brokerage account is not what determines ownership interest. In many cases, at least a portion of the investment account is likely subject to division when the spouses divorce. Spouses may find themselves disagreeing about which investments are marital property or how to divide them.
They may also disagree about the value of those investments. Picking a valuation date can help establish an appropriate fair market value for stocks. In cases where one spouse worries that the other may have hidden assets or may attempt to manipulate the property division process, they may need support from a trained financial professional.
A careful financial review may be necessary
Larger marital estates tend to be more complex. There could be multiple different accounts to address and an increased reason to worry about hidden assets or financial misconduct during the divorce. Spouses worried about the misrepresentation of marital resources or an unfair property division outcome because of an extensive and complex marital estate may need to hire a forensic accountant.
Forensic accountants have specialized experience and training that help them conduct asset and income tracking. They perform thorough financial reviews to track resources and makes sense of financial records. Forensic accountants can help locate investment resources that are part of the marital estate. They can quantify what portion of an investment account may be separate and what is marital. Their support can make it easier to locate and properly address investment accounts.
Properly addressing stocks and other investments while dividing marital property is often of the utmost importance for divorcing spouses. People concerned about a complex marital estate may need help identifying and valuing marital assets.