Navigating a divorce can be a complex process, especially when it involves dividing assets such as investments. In Connecticut, the process of dividing investments in a divorce follows the principle of equitable distribution.
This blog will delve into how investments get divided in a Connecticut divorce, offering you a clearer picture of what to expect during this challenging process.
The principle of equitable distribution
Connecticut follows the principle of equitable distribution when dividing marital assets in a divorce. This means that the court aims to divide the couple’s assets, including investments, in a way that is fair but not necessarily equal. The court considers various factors when determining how to distribute investments, including the length of the marriage, the reasons for the divorce, the age and health of each spouse and each spouse’s income and future earning capacity.
The categorization of investments
Before dividing investments, the court must first determine whether they are marital or separate property. Generally, the courts consider investments acquired during the marriage marital property and are subject to division. However, investments owned before the marriage, or those acquired through inheritance or as a gift, are usually considered separate property and are not divided.
The actual division of investments
Once the court has classified the investments and considered the various factors, it then proceeds with the division. This could mean liquidating the investments and dividing the proceeds, or the courts could award one spouse the investment while the other spouse receives assets of equivalent value. It is also possible for both parties to continue to share the investment, although this is less common.
By understanding how the courts divide investments, you can be better prepared for the financial implications of divorce.