People who achieve financial stability often try to plan for the future. Investments can generate regular returns and can multiply the wealth of an individual. Married couples might acquire a relatively complex investment portfolio throughout their marriages.
They might purchase real property, stocks, digital investments and even physical resources, like gold. Investments can provide a source of income in the future upon their sale or can provide a meaningful legacy for others when people eventually die.
Married couples who have invested throughout their marriage may need to address various investment resources when they divorce. How can couples fairly address shared assets that could have variable values?
Setting a validation date
When trying to determine what resources are worth in order to divide them appropriately, spouses have to choose a valuation date. Economic factors shift constantly, so the date when people value assets can have a profound impact on the final figure set.
Spouses may choose the date of their initial separation or the date when one of them filed paperwork with the court as the valuation date. Selecting a specific date that both spouses use when estimating the value of resources can make it easier for them to agree on a fair market value.
Discussing personal priorities
Particularly when spouses have a large and diverse investment portfolio, they may each have different priorities regarding what they retain. One spouse might have more of an interest in maintaining stocks because they routinely day trade.
The other might want to hold on to unimproved property as long-term investments that they can capitalize on years later. In some cases, spouses can reach arrangements where each of them retains certain resources from the investment portfolio to make things as fair and amicable as possible.
Not all couples are able to cooperatively divide their investment holdings. They may need a judge to divide their assets instead. Judges can allocate property and responsibility for debts to either spouse.
They also potentially have the authority to order the sale of certain assets so that spouses can split the proceeds. In scenarios where people aspire to retain specific investment holdings, working toward an uncontested divorce is often the best option available.
Reviewing marital assets and personal goals for divorce can help people develop workable strategies. Investment holdings can often lead to complex divorce proceedings.