If you are going through a divorce, you may have concerns about what will happen to your investment portfolio. Let the experienced divorce attorneys at Aiello & DiFalco help you navigate this difficult process.
As a leading family law practice on Long Island, we have in-depth knowledge of laws governing the division of marital property and can help to protect your investments. Contact us today to book a consultation.
How is Marital Property Divided in New York?
In New York, marital property, including investment portfolios, is divided through a process known as equitable division. This means that the court will divide marital property in a fair and just manner, but not necessarily in an equal manner.
Notably, only marital property is subject to division in a divorce. Marital property is any property that was acquired during the marriage, regardless of who paid for it. Separate property, which is property acquired before the marriage or through gifts, lawsuit settlements, or inheritances, is not subject to division.
What Types of Investments are Subject to Division in a Divorce?
Investments that are subject to division in a divorce include:
- Investments acquired during the marriage, such as stocks, bonds, mutual funds
- Retirement accounts such as pensions, 401(k) plans, and 403(b) plans
- Stock options and other incentive compensation plans
- Alternative investments, including crypto or other assets
If one spouse had an investment portfolio before the marriage that increased in value during the marriage, the appreciated value may also be subject to division. If the appreciation was simply due to market forces and can be traced during the marriage, you may be able to protect that asset entirely.
How Can I Protect My Investment Portfolio in a Divorce?
If you have an investment portfolio and are going through a divorce, there are steps you can take to protect your portfolio, including:
- Keep detailed records – Keeping detailed records of all transactions and activities related to your investment portfolio can help you protect your assets in a divorce. Make sure you keep track of the date you acquired each asset, its original cost, and its current value. Additionally, keep records of all investment account statements, trade confirmations, and tax returns.
- Open separate accounts – If possible, consider opening a separate investment account that is solely in your name or keeping premarital investments in a totally separate account while investing in a new account during the marriage. This will help you prove that the assets in the account are yours and not marital property. If marital funds are used to fund the account, however, it may be considered marital property.
- Seek professional advice – Consult with a financial planner or advisor who can help you develop an investment strategy that is designed to protect your portfolio in the event of a divorce. They can help you create a diversified portfolio that minimizes the risk of losing a significant portion of your investments.
- Consider mediation – If you and your spouse are willing to work together to resolve your divorce, consider mediation. Mediation is a process in which a neutral third party helps couples negotiate and reach an agreement. By using mediation, you and your spouse can create a mutually beneficial plan for dividing your assets, including your investment portfolio.
By working with our experienced Long Island divorce attorneys, you can protect your investment portfolio in a divorce. We can review your investments, help you determine whether assets are marital or separate property, and negotiate a favorable settlement that protects your investment portfolio.
Why Aiello & DiFalco?
Our attorneys are well-versed in the nuances of dividing marital property, including complex investment portfolios. One way we can help is by identifying and classifying the portfolio as separate property if the investments were acquired before the marriage and not commingled with other marital assets.
Our attorneys can also help by negotiating a settlement that takes into account the value of your investments. For example, if your investment portfolio is particularly valuable, we can negotiate for you to receive a larger share of other marital assets in exchange for your spouse receiving a smaller share of the investment portfolio.
By collaborating with a respected network of financial professionals, we can also ensure that your investment portfolio is properly valued to determine its current and future value. In so doing, we can ensure that it is divided fairly and that you are not shortchanged. We can also factor in important issues such as capital gains and other concerns.
Lastly, we can help ensure that any agreements regarding the division of marital property are properly documented and enforceable. This may involve drafting a settlement agreement that outlines the terms of the division of assets and protects your interests in the event of any future disputes or issues. Above all, we will help you secure your financial future so you can move forward after the divorce.
Talk To Our Experienced Divorce Attorney About Your Investment Portfolio
At Aiello & DiFalco, our attorneys are committed to helping you achieve the best possible outcome in your divorce case. If you are concerned about how your investment portfolio is treated in a divorce, contact us today to schedule a consultation.