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What assets may my spouse attempt to hide during a divorce?

On Behalf of | Jun 2, 2021 | Divorce |

While your soon-to-be ex-spouse may not have intentionally concealed assets, divorce requires transparency; this may result in uncovering undisclosed financial holdings. With more individuals purchasing cryptocurrencies or digital assets, it may require an investigation to discover if your spouse holds them in an online ledger.

Common financial assets uncovered in divorce include executive compensation packages; some spouses, however, may not have an awareness of them. As noted by Kiplinger’s Personal Finance, an employer offering restricted stock may require your spouse to work there for a certain length of time or produce specific results before they vest. He or she may not legally trade them until then.

How may stock restrictions affect a divorce settlement?

Your spouse’s ability to exercise his or her employer’s restricted stock units may affect whether you receive the value of their gains. If your divorce occurs before your spouse has the right to exercise restricted stock options, you may not receive their future gains.

Based on their fair market value, you may negotiate your spouse’s stocks for other marital property. The court, however, may require proof that you deserve part of an ex-spouse’s future stock gains based on their qualifying as marital property. The length of your marriage and the value of your contributions to a shared household may factor into the outcome.

How may a retirement plan divide between two spouses?

Your spouse’s employer-sponsored retirement account may provide you with a lump-sum distribution or a percentage of its earnings. The IRS requires submitting a qualified domestic relations order to the divorce court. A judge may use the QDRO to order child or spousal support.

Some of the nation’s wealthiest couples live in Connecticut, which follows equitable distribution laws. Both spouses generally disclose all assets obtained during a marriage to determine each individual’s fair share during a divorce.