After years of marriage, you and your spouse have decided to part ways. However, you invested in stocks without your spouse’s knowledge during your marriage. Now, you question how to divide these assets.
Indiana follows the principle of equitable distribution for asset division, including stocks. This means the court will divide assets fairly but not necessarily equally. Here is how the law typically handles stocks in a divorce:
Marital vs. separate property
The court considers stocks acquired during your marriage as marital property, subject to division. Stocks acquired before or after marriage are separate property and remain undivided.
Valuation of stocks
Experts determine your stocks’ current market value, which can fluctuate. This valuation is crucial for equitable distribution.
Division methods
Several methods exist for dividing stocks. Consider the following options:
- Direct division: You and your spouse split the stocks.
- Buyout: One of you purchases the other’s share of the stocks.
- Deferred distribution: You both hold onto the stocks and divide the proceeds when sold.
The division method depends on your agreement with your spouse or the court’s decision if you cannot agree.
Vested vs. unvested stocks
The court divides vested stocks you wholly own as marital property. It may also consider unvested stocks you do not wholly own as marital property and divide them based on specific formulas.
Factors considered by the court
The court examines several factors to ensure fair division. These factors include:
- Each of you and your spouse’s contribution to acquiring the stocks
- The economic circumstances of each of you
Understanding these principles will help you prepare for the financial aspects of your divorce and protect your investments. Seek professional advice if you need further guidance or have questions.