What is Davis Schuler & Associates, A CDFA Practice?

Davis Schuler & Associates, A CDFA Practice supports leads, CV requests, and QDRO leads across 11 pages for client intake and divorce advisory work.

Topic

Investments and Brokerage Accounts

Tracing, valuing, and dividing brokerage, investment, and securities accounts.

Investments and Brokerage Accounts

How are brokerage and investment accounts divided in a divorce?

Brokerage and investment accounts are divided as marital property to the extent they were funded or grew during the marriage. The accounts are typically valued as of the date of separation or another date set by the court. Non-retirement brokerage accounts can be transferred between spouses or liquidated and split without the tax penalties that apply to retirement accounts. Premarital contributions and separate property growth must be traced and excluded from the marital estate.

Investments and Brokerage Accounts

How do you trace premarital investments through a commingled brokerage account?

Tracing premarital investments through a commingled brokerage account requires reconstructing the account's transaction history from the date of marriage forward. The analyst identifies the premarital balance, tracks subsequent deposits and withdrawals, and applies tracing methods (such as the pro-rata or lowest-intermediate-balance method) to determine what portion of the current balance is separate property. Without adequate tracing, a commingled account may be presumed entirely marital.

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