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The Law Offices of James A. Cuddy, LLC

Call To Find Your Way Forward 203-583-8256

Call To Find Your Way Forward 203-583-8256

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Dividing investments in a Connecticut divorce

On Behalf of | Apr 10, 2023 | Blog, Divorce

When a couple decides to end their marriage, dividing their assets can be a complex and emotional process.

One significant aspect of this process involves splitting investments, such as stocks, bonds and mutual funds. It is important to understand how the courts divide investments in a Connecticut divorce and the factors that play a role in the division.

Equitable distribution in Connecticut

Connecticut follows the principle of equitable distribution when dividing marital assets, including investments. Equitable distribution means that the court will divide the assets fairly and justly, but not necessarily equally. The court will consider various factors to determine what constitutes a fair division of investments in each specific case.

Factors considered in dividing investments

Several factors come into play when a court divides investments between divorcing spouses. Some of these factors include:

  • The length of the marriage
  • The reasons for the divorce
  • The age, health and occupation of each spouse
  • The employability and future earning capacity of each spouse
  • The needs of the custodial parent to maintain the marital home for the children’s benefit

The court will evaluate these factors, among others, to determine how to distribute the investments equitably.

Separate vs. marital property

It is essential to differentiate between separate and marital property when dividing investments in a divorce. Generally, separate property includes assets owned by either spouse before the marriage or acquired during the marriage through inheritance or gifts. Marital property, on the other hand, consists of assets acquired by either spouse during the marriage, including investments.

Only marital property is subject to equitable distribution. If one spouse can prove that specific investments are separate property, the court will not divide them. However, if separate property has become commingled with marital property, it may be challenging to distinguish between the two, and the court may consider the entire investment as marital property.

Dividing investments in a divorce is a complex process that involves considering various factors. Understanding the principles of distribution can help ensure a fair outcome for both parties involved in the divorce.