Divorce can raise many questions regarding the equitable division of investments. This process involves various legal considerations, but knowing how your investments will be divided is important, as this knowledge can help you plan for financial changes after a divorce.
Determining marital vs. separate property
First, distinguish between marital and separate property. These are investments made during the marriage with joint funds, making them subject to division. However, any investments owned before the marriage, or those inherited or received as a gift during the marriage, are generally deemed separate property and are not divided.
Equitable distribution process
In New Hampshire, the courts use an equitable distribution approach. This means the court looks at several factors to decide how to divide investments fairly.
The factors include each spouse’s economic circumstances, the length of the marriage, and contributions each spouse made to the marital property (including non-financial contributions such as homemaking and childrearing).
Role of valuation
Valuing investments plays a critical role. Stocks, bonds, mutual funds, and other securities must be accurately assessed to ensure fair distribution. This might involve financial experts who can provide current market values and potential future gains or losses.
Considering taxes and liquidity
Tax implications and the liquidity of investments also play a crucial role. Some assets, like certain stocks or bonds, might incur significant taxes upon sale or transfer. Consider taking the time to research this or enlisting professional assistance in making informed decisions about dividing investments.
Seeking a balanced agreement
You can reach an agreement with your spouse outside of court. This method often involves negotiation and sometimes mediation. By agreeing on how to divide your investments, you can avoid a lengthy court process and tailor the outcome to fit your needs better.
With some knowledge, you can navigate your divorce with more confidence about your financial future. Remember, focusing on clear communication and thorough documentation will help protect your interests during this challenging time.
