Distribution of Stock

SD · 04-26-2006, 04:29 AM

When I was first married to my wife, her parents gave both of us 360 shares of stock as a wedding gift. Since that time we purchased an additional 400 shares. Now we are involved in a lengthy divorce (4 years in August) and my wife is claiming the original stock was a birthday gift from her parents only to her. Since her parents will more than likely say the stock was only given to her (the shares are only in her name) and we used my money to purchase additional shares of stock and is now co-mingled. When is comes to settlement, legally, should I not get half of the entire amount, not just half of the 400 shares? (That is if we can ever get to court 6 court dates cancelled at my wife's request now) Thank you so much!

**Mr. Knowitall** · 04-26-2006, 08:23 AM

That's a complicated analysis, first requiring the determination of whether or not the stock falls into the marital estate. That could involve the possible presentation of false or misleading testimony, issues of the treatment of the stock after marriage, the fact that the stock is only in your wife's name, issues of commingling and management of the stock, etc.

South Dakota provides for the equitable distribution of the marital estate - the split does not necessarily have to be 50:50. If the stock is found to be your wife's separate property, there could be a second analysis to determine if the division of marital assets should be skewed in your favor on equitable grounds.

Presumably you wouldn't be asking this question if the stock were trading at $1/share - presumably we're talking here about a substantial asset. This is an issue you should discuss with your divorce lawyer.