How does the court treat stocks and shares on divorce?

Investments and stocks are like many other assets in a divorce, in that they can be considered matrimonial or non-matrimonial property. Stocks and shares purchased during the course of the marriage will generally be considered matrimonial property, in relation to which the starting point will be equal division upon divorce.

Although non-matrimonial property will generally beringfenced and not subject to division upon divorce, such property can be invaded in needs-based cases where the available matrimonial assets are not enough to meet the basic needs of the spouses, such as housing. It is also possible that stocks and shares acquired prior to marriage may become matrimonialised during the course of the marriage.

If it is established by the court that the stocks and shares are in fact part of the matrimonial pot, the main options are to:

• Transfer some of the shares to your spouse
• Sell the shares and split the proceeds
• Offset the value of the shares against other assets

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