Divorce: How stocks are divided during the process

Throughout North Carolina and the rest of the country, certain laws determine how assets are going to be divided during a divorce. For example, Texas law states that everything must be divided down the middle, but other states may go the “what’s fair” route instead. However, things begin to get complicated once stocks are introduced into the equation. The fact is that stocks are difficult to value, so it’s hard to determine what is actually “fair.”

Selling stocks during a divorce

Since a stock’s value goes up and down, it can be difficult to determine how, exactly, it should be divided during a divorce. The best route to take, then, is to sell the stocks. This will provide you with a concrete number to work with, so the division of stocks can take place without too much uncertainty attached to the process.

Bulk division

In some cases, both parties may see the selling of their stock as a foolish thing to do. This is because they may understand that the stock will increase in value over time, and getting rid of it so soon may cost them money. In this case, couples will choose to divide the stocks in bulk. This means that one person will take over the entirety of one company’s stock while the other person takes control of the stocks of another entity.

Company stock

Under the law, anything obtained during a marriage is considered marital property. This means that if your company offered you stocks, then those also belong to your spouse. Some people may not want to sell or give them away if they remain with the company. In this case, you may choose to simply pay the difference (half of the stock) to your spouse.

There are many ways to divide stocks during a divorce, but that doesn’t necessarily mean you are not going to face legal challenges. Therefore, it is advisable to consult an attorney who is experienced in dividing marital stocks.