The terms of a property division settlement can influence an individual’s standard of living for years after a divorce. It is critical for people preparing for divorce to understand their rights and to set priorities early in the divorce process.
Resources intended to provide financial stability in the future are of the utmost importance during property division negotiations. Retirement savings, vehicles and residences often spark property division conflict.
Spouses may also need to divide their investment accounts. What are the most common challenges associated with investment holdings during divorce?
Appropriate valuation
Determining what investment accounts are worth can be difficult. The first step in that process is often to determine what portion of the resources are marital and what are separate.
Investments acquired prior to marriage may remain the separate property of one spouse. Investments acquired during the marriage are likely marital property. To set a fair value for assets that fluctuate in value from day to day, spouses may need to agree on a specific valuation date.
Account ownership and division
Regardless of whose name is currently on the account, each spouse may have an interest in the investment resources acquired during the marriage. Spouses may need to negotiate who keeps the actual account or work out an arrangement for dividing the account.
In cases where directly splitting investment accounts isn’t possible, creative solutions may be necessary. Spouses might need to use other assets or even marital debts to balance the decision to allocate the investment resources to one spouse.
The more assets people have accumulated during marriage, the greater the chances of conflict when they try to divide those assets during divorce. Working with an attorney to establish goals and to properly value resources can make it easier for people to achieve fair asset division outcomes.
