Dividing Stocks During Your Jackson, Mississippi Divorce

If you and your partner own stocks as part of your investments or retirement plan, you may wonder what your rights might be when it comes to dividing stocks during your divorce. If you acquired the stocks during your marriage, the stocks will most likely be considered marital property and subject to division during your divorce. However, if one partner owned the stocks prior to the marriage, the division of assets could get more complicated. For example, if the stocks were separately owned, but generated a profit during the marriage, the profit could potentially be considered marital property, but only in certain circumstances. How do you divide your retirement savings in divorce? How do couples divide stocks? It largely depends on your situation. Having a divorce lawyer like Malouf & Malouf, PLLC on your side in Jackson, Mississippi to assist you with dividing complex assets like stocks can make an immense difference as you move forward with your divorce. Some Complexities That Can Arise When Dividing Stocks Stocks may be part of a person’s retirement plan or pension benefits. When stocks are part of a retirement plan or pension, how long you were married and contribution to the pension during the marriage may play a role in determining how a retirement investment portfolio may be divided or how a pension may need to be handled. Another complexity can arise is when one partner has stocks that were purchased before the marriage, that then generated income during the marriage. If the profits were not comingled in bank accounts or in other assets, then the original owner of the stock may be able to continue to enjoy the increased profits and not consider these profits marital property, but if the profits were put into a shared bank account or used by both parties, then this case could be more challenging and the profits might be considered marital property. Malouf & Malouf is a divorce law firm in Jackson, Mississippi that can evaluate your situation and offer a roadmap forward, or who can work with you during negotiations. Another thing you may need to consider is how tax implications could change the value of stocks or retirement accounts from their stated value. If the value of stocks have gone up since you purchased them, you may have to pay taxes on these capital gains when you sell. If you have a retirement plan where contributions are made before taxes, when you begin to draw from the account, you’ll need to pay taxes on these withdrawals. The value of your savings, retirement plans, and stocks will depend on the estimated taxes you may have to pay when you cash in on these investment instruments. Sometimes cash on hand or other property may be worth more than certain stocks or retirement plans, where the taxes have been deferred. Having a lawyer evaluate your shared assets, and helping you understand the full value of your assets before division could make a big difference when it comes to arriving at a fair division of assets, stocks, and retirement accounts. Another issue that can arise is when your spouse is paid in stock options or in restricted stock. Sometimes the increase in value of these stock options over time can be quite significant, so couples going through a divorce need to carefully consider all modes of payment each spouse received during the marriage, and consider how these options will be divided. Valuing stock options can also be challenging and sometimes couples may need to hire forensic accountants or accountants to help them assess the value of their shared marital estate. Estimating the value of stocks in general can also be challenging as the market changes. Malouf & Malouf, divorce lawyers in Jackson, Mississippi may be able to assist you with various complex questions that can arise during a divorce. Need assistance? Contact our lawyers today. High Net Worth Divorce? Reach Out to Malouf & Malouf Significant amounts of wealth of high net worth divorcing couples may be in stocks, investments, and other instruments. Dividing assets in a high net worth divorce can sometimes get complicated. However, with the assistance of a divorce lawyer, you and your former partner may be able to reach a divorce agreement that is fair to both parties. If you and your partner have a prenuptial agreement in place, each party should have a lawyer assess the agreement, review whether it might be enforceable, and help you understand its implications during your divorce. And if you don’t have a prenuptial agreement, a divorce lawyer who can help you understand your rights and options under the law can be important when dividing assets and debts. Facing the division of stocks or a retirement account in your divorce? You are not alone. Malouf & Malouf, is a divorce law firm in Jackson, Mississippi that may be able to help you.