Dividing Stocks During a Divorce

In Canada, dividing stocks during a divorce is generally a straightforward process. All assets, including investments, are typically shared equally between divorcing spouses. However, there are some exceptions.

Learn more about this process and how we could help you preserve your wealth by contacting our team of qualified lawyers at The Riley Divorce & Family Law Firm.

How Are Stocks Divided in a Canadian Divorce?

For many affluent couples going through divorce, fairly dividing the family’s finances is a chief concern. The Family Law Act governs the division of assets during a divorce. Under its provisions, spouses are treated equally—regardless of their role in earning income, both are considered equal in their contributions, and neither is granted financial privilege. Canada’s divorce system also operates under a “no-fault” rule and does not make decisions based on conduct, such as infidelity.

When Unequal Division of Stocks May Apply

Despite Canada’s equitable distribution guidelines, there are a few instances where stocks may be disproportionately allotted during a divorce. If a spouse intentionally depletes the family’s bank accounts or sells joint property, assets may be split accordingly. In addition, if your partner fails to pay their agreed-upon debts, incurs excessive debt during the marriage, or one person must incur a larger share of support expenses to provide for the family, there could be a case for exemption.

When couples make pre-marriage arrangements regarding stocks or other assets, such as a prenuptial agreement, the terms of this contract are also factored into the division of stocks after the divorce. Married couples must also cohabitate for at least five years for stocks to be split equitably.

Stocks Owned Prior to the Marriage

Any assets brought into the marriage are retained during a divorce—unless their value increases significantly over the years. In the case of stocks, that situation is highly likely. Therefore, the profit made on those stocks since you married would be divided evenly between you and your spouse.

Call Us Today for Help With Allocating Assets During a Divorce

Managing a divorce alone could be risky because, in addition to ensuring fairness, you need to strictly follow legal regulations. Let one of our experienced lawyers from The Riley Divorce & Family Law Firm help you navigate the process. We are available 24 hours a day to answer your questions about the process of dividing stocks during a divorce. Contact us today to get started.