Investments allow successful individuals to capitalize on the resources they already have. Many married couples invest jointly to generate passive income or increase their household wealth. The stocks, real estate and other investments they acquire may represent a significant portion of their personal wealth. Those resources can also present a challenge when spouses decide to divorce.
What issues frequently arise while addressing investments during property division negotiations?
A lack of liquidity
Many investments require a long-term commitment. People cannot liquidate those investments to split them with their spouses without incurring penalties or significant losses. Spouses may need to come up with creative solutions when splitting investments they cannot liquidate.
Disagreements about valuation
Investment holdings generally fluctuate in value based on demand and the overall economy. Spouses may find it challenging to agree on a fair market value for their investments unless they first set a valuation date.
Achieving a reasonable settlement
A fair or equitable property division settlement can be difficult to achieve in cases where spouses own a variety of high-value investments. From attempts to undervalue certain investments to claims that certain resources are separate property, conflict related to investment holdings is common. Spouses often need support as they assess the marital estate and push for reasonable property division terms, especially if they cannot directly divide their investments.
Anyone facing complex property division proceedings during a high-asset divorce likely requires guidance as they review their holdings and prepare for negotiations. Retaining the services of a divorce attorney is important for those who want to preserve as much of their marital property as possible as a result.
