Spouses with investments often face major financial complications during divorce proceedings. The larger and more complex the marital estate is, the more difficult it may be to reach an agreement about the equitable distribution of marital property.
Certain types of assets have a strong association with contentious property division proceedings. Investments of various types can cause serious challenges during divorce negotiations and litigation. Spouses may disagree about how to address them in a fair manner.
Stocks are a frequent source of divorce disputes. What complications can stocks create for divorcing spouses?
Valuation disagreements
Spouses trying to address investment assets must first agree on what those resources are worth. Determining the fair market value of various stocks may require agreeing on a specific valuation date.
Otherwise, the spouses may calculate vastly different estimated values for stocks. Agreeing on the value of the stock is the first step toward addressing it fairly.
Liquidity issue
Stocks also create challenges because liquidating them on demand isn’t always realistic. Spouses may instead need to use other assets to balance decisions about stocks rather than selling them abruptly during divorce. In cases involving stock options provided as part of a deferred compensation package for an executive or other successful professional, the process of addressing those assets can become even more difficult to navigate.
Spouses preparing for high-asset divorces need help identifying likely challenges and negotiating effectively for appropriate property division terms. Working with a family law attorney can make it easier for people to understand their rights under equitable property distribution rules. With proper support, they can negotiate fair terms with their spouses, even if the marital estate is complex.
