How to divide stocks in a divorce

On Behalf of | Jun 23, 2023 | DIVORCE - High-Asset Divorce |

When you go through a divorce in New Jersey, you need to divide assets, including stocks. Understanding how to divide stocks can help you navigate this part of your divorce proceedings.

Here are key considerations and potential strategies on how you can divide stocks in a New Jersey divorce.

Classifying stocks as marital property

In New Jersey, the courts generally consider stocks that you acquired during the marriage as marital property. They subject these stocks to equitable distribution. Equitable distribution means dividing the assets fairly and justly, based on various factors. These factors include the length of the marriage, each spouse’s financial contributions and their individual needs.

Valuing and distributing stocks

To divide stocks, you must accurately determine their value. You can do this by calculating the market value on a specific date or using professional valuation services. Ensure that you obtain reliable and up-to-date information to ensure a fair evaluation of the stocks.

Once you determine the value of the stocks, you can allocate them between you and your spouse. There are various methods of distribution, including:

  • Offsetting: You or your spouse may receive a larger share of other assets, such as real estate or retirement accounts, to offset the value of the stocks received by the other.
  • Buyout: You or your spouse may choose to buy out the other’s share of the stocks by offering an equivalent value in other assets or cash.
  • Selling and Dividing Proceeds: You can sell the stocks and divide the proceeds between you and your spouse based on your agreed-upon or court-determined shares.

Remember, the specific method of division may vary depending on your unique circumstances and the preferences of both parties. Mediation or negotiation outside of court can offer more flexibility and control over the division process.

When you need to divide assets, including stocks, during a New Jersey divorce, it is crucial to understand the process.