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Are stocks making your property division more complex?

As you go through your divorce proceedings, you may feel most worried about the outcomes of property division. Though certain laws may make some aspects of this process seem simple, you may face more complications if particular assets are involved in your division process. Complex assets such as stock options and restricted stock could make your case a little more difficult to work through than if less complex property were involved.

With stock options, you or your spouse have the ability to purchase company stock at a set price. This price could result in a nice profit if you or your spouse buy and sell the stock at prime times. With restricted stocks, you or your spouse may obtain shares of the company, but the company will only transfer those shares once you meet certain conditions.

Look for such assets

If your company has offered you stock options or restricted stocks, then you obviously know of their existence and potential impact on your finances. However, if you have not received such benefits yourself, you may want to look into your spouse's company benefits to determine whether he or she may have stocks. This step may prove difficult if your spouse attempts to hide such information in hopes of protecting those assets.

Determine the value

You may also have difficulty determining the value of stock options and restricted stock as these numbers can fluctuate. However, finding at least an estimated value could impact how you choose to approach your division process. If you obtained these stocks or options from your company, you may want to negotiate other assets in hopes of keeping the benefits, or you may wish to take this approach if your spouse has access to these options.

Consider tax implications

As with most financial changes, taxes can play a considerable role. Profits stemming from stock options or restricted stocks can accrue considerable taxes. Therefore, you may wish to ensure that you consider how these taxes will affect your future financial outcomes. If you hope to keep the stock-related assets, you may wish to consider whether the tax implications could lower their worth and entitle you to additional property in the settlement as well.

Getting what you want

When dealing with complex assets like stocks, you may feel as if you have uneven footing when it comes to determining what you want from your property division proceedings as many aspects need your consideration. In order to have the best chances of achieving the outcomes you most desire, you may wish to closely assess your property and find out how Texas division laws could impact your case.

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