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Family Law Blog

How Are Investments Split During Divorce?

Wednesday, July 14, 2021

If you are going through a divorce, it is pretty easy to be distracted by the tangible property that needs split — the house, the cars, the various stuff therein. You may forget about the assets you can't actually touch. For example, the intangible assets you haven't touched in awhile like your investments.

Investments

For some, their investments — the stocks, bonds, mutual funds, and retirement accounts — can have quite a sum tied to them. However, splitting these assets may not be as simple as you hope.

Like any asset, investments can be exempt from division during a divorce if you made them before entering the marriage. This means contributions to a retirement account or stocks bought before marriage, for example, will not be subject to being split.

Unfortunately, this becomes complicated because we keep investing in these things even after marriage. Consider any contributions, dividends, or investments made during a marriage marital property. This means splitting an investment account is necessary and typically more complicated than splitting other financial accounts like a simple checking account.

Negotiations

In some cases, it may be more beneficial to do a little negotiation in order to keep investments whole. In some cases, you may be able to give something of equal value to the other party in order to keep an investment account whole. Yet, as investments earn value, this can also be a bit of a hard sell as well.

Conclusion

It becomes complicated dividing up any asset during a divorce. It is this property division that makes divorce so complicated. If you are starting the divorce process and have significant assets that need splitting, contact us today. The Law Office of Jamra & Jamra can help you make sure you get your fair split as well as help the process go as smoothly as possible.