A divorce is a complex process that involves the division of assets between two estranged partners. In Arkansas, investments and stocks owned by the couple are also subject to division during a divorce. This article will explore the rules governing division of investments and stocks in an Arkansas divorce.
Marital Property vs. Separate Property
Before delving into division of investments and stocks, it’s important to understand the distinction between marital property and separate property. Marital property is property that is acquired during the course of the marriage, while separate property is property that is acquired before marriage or after the date of separation.
In Arkansas, marital property is subject to division during a divorce. Separate property, however, is considered the sole property of the individual who owns it and is not subject to division.
Division of Investments and Stocks
Investments and stocks, whether owned jointly or individually, are considered marital property if they were acquired during the marriage. Therefore, they are subject to division during a divorce.
Determining the Value of Investments and Stocks
The value of investments and stocks is determined based on their fair market value at the time of divorce. If the value of the investments or stocks has increased since they were acquired, then the increase in value is considered marital property.
Equitable Distribution
Arkansas follows the principle of "equitable distribution" when it comes to division of marital property. This means that the court will divide the marital property in a manner that is fair and reasonable, but not necessarily equal.
When deciding how to divide investments and stocks, the court will consider factors such as:
- The contributions each spouse made to the acquisition of the investments and stocks
- The length of the marriage
- The financial needs and liabilities of each spouse
- The tax consequences of dividing the investments and stocks
Conclusion
Investments and stocks owned by a couple are subject to division during an Arkansas divorce, as long as they were acquired during the marriage. The value of the investments and stocks is determined based on their fair market value at the time of divorce, and they are divided in a fair and reasonable manner based on the principle of equitable distribution.