The volatility of stock market prices can get couples a bit on edge when going through or thinking about a divorce in New York. Many spouses wonder how a decline or rise in the stock market portfolio will affect the division of their financial assets during a divorce. If you have a similar question, read on to find out how to go about property division involving stocks.
New York is an equitable distribution state
An equitable distribution state is one in which marital property is divided fairly, not equally, between the spouses. The judge will decide based on various factors that show your contribution to the marriage and your marital property.
You can also decide to resolve your property disputes with your partner on your own and then write a separation agreement that you will present to the judge for the divorce.
Dividing financial assets during divorce
Economic fears are common in a high-asset divorce with property tied up in the stock market. Stock prices are not always stable; sometimes, they fluctuate so much that they leave individuals worried about their future after the divorce. However, you can still come out of it with financial security and confidence.
Start by knowing the cost basis of your stocks
The cost basis is the amount of money you initially paid for the stock that you or your partner owns. You should access it to know if the stock increased or decreased in value before deciding how to split it.
Cash-out or invest on
If you are unsure how to handle the stocks you get after a divorce, especially in a highly volatile market, you can decide to cash out and do what you want with the money. If you have a long-term vision for your stocks, you can hold on to them and invest on. The financial market, more often than not, corrects itself and stabilizes with time.
Contact an experienced divorce attorney to counsel you through all the financial matters you need to address during the divorce. You don’t need to be a financial expert; an experienced attorney’s responsibility is to help you make the best decisions during asset division.