Among the many financial concerns that arise during divorce, one of the more complex and often overlooked issues is dividing stock in divorce. Whether the assets include brokerage accounts, retirement accounts, or stock options, understanding how they are handled in divorce proceedings is essential for protecting your financial future.
At Albin Oldner Law Group, our experienced Frisco divorce attorneys help clients navigate stock division with clarity, ensuring they retain what’s fair while complying with Texas family law and tax regulations.
Are stocks considered marital property?
In Texas—a community property state—assets acquired during the marriage, including stocks, are generally subject to division. This means that any stocks purchased or granted during the marriage may be split between the spouses, even if they’re only in one person’s name.
Stocks that were owned before the marriage, inherited, or gifted to one spouse may be classified as separate property, but determining this often requires clear financial records and legal guidance.
Understanding the date of separation
Unlike some equitable distribution states, Texas doesn’t officially recognize the date of separation in the same way. Instead, the date that carries the most weight is the day of the divorce trial or divorce settlementStock acquired between the wedding day and the date fo final trial is presumed to be marital property and subject to division.
Stock options and restricted stock
When one or both spouses receive options or restricted stock through their employer, these assets can be harder to classify. Some may be granted before the marriage but vest after; others may be contingent on future employment.
Courts typically examine:
- When the stock was granted
- When it will vest
- Whether it was intended to compensate for past or future work
- The duration of employment relative to the marriage
If the stock is granted during the marriage, it may still be considered marital property, and courts may award a portion of it to the non-earning spouse.
How are stocks divided?
Texas law doesn’t require that stocks be divided equally, but rather in a “just and right” manner. That may involve:
- Transferring ownership of some shares to the other spouse
- Selling the stocks and splitting the proceeds
- Awarding one spouse the full value of the stocks while giving the other a greater share of other assets
In cases where spouses cannot agree, a judge may order a specific distribution based on the total marital estate and both parties’ financial circumstances.
t portfolios
If your investment portfolio includes stocks held within retirement accounts—such as 401(k)s, IRAs, or pensions—these too are subject to division. The division often requires a Qualified Domestic Relations Order (QDRO) to properly split the account without early withdrawal penalties.
Understanding whether stocks are held in taxable brokerage accounts or tax-deferred retirement plans will determine not only how they’re split but how taxes will affect each party’s net benefit.
Protecting your financial future
For many divorcing couples, stocks are a major component of their wealth. Whether you’re seeking a fair share of what was acquired during the marriage or protecting your separate property, working with experienced legal and financial professionals is key.
At Albin Oldner Law Group, we work closely with accountants and valuation experts to make sure all stock-related assets are identified, valued correctly, and divided in a way that supports your long-term goals.
Get guidance from trusted Frisco divorce attorneys
Dividing stock in divorce can quickly become complex—especially when it involves vested and unvested options, tax implications, and unclear ownership records. Our team is here to help you untangle the details and pursue a resolution that protects your future.
Call Albin Oldner Law Group today at (214) 423-5100 for expert guidance in handling stocks and investments during divorce.
