Transferring Securities - Personal Property Between Spouses - Family Law, Divorce, Personal Injury in Texas (2024)

FAQs

How do you transfer stocks after divorce? ›

To transfer certificated shares in a publicly traded company, the transferor spouse can either sign the back of the stock certificate or execute a power of attorney allowing the recipient spouse to change the securities' ownership and deliver the stock certificate to the other spouse.

Pursuant to Tex. Fam. Code § 3.001, personal injury recoveries are the separate property of the injured spouse, but recovery for lost earning capacity is community property.

In Texas, inheritances are typically considered separate property and not subject to division in a divorce. However, to ensure protection, avoid commingling inherited assets with community property. Keeping the inheritance in a separate account or trust can help maintain its separate status.

The general rule in a Texas divorce is that assets acquired after the wedding ceremony and before filing the petition for divorce are marital property. Unlike some states, Texas does not recognize legal separation. Even if spouses live in different residences, they are still married under the law.

Generally, California follows the idea that any property obtained after a couple is married or that co-mingles with marital assets is community property. As such, each spouse is entitled to an even 50-50 split of assets upon their marriage. This includes retirement accounts, properties, stocks, and investments.

You can gift shares to someone in your family – including your spouse, civil partner or children – as long as you hold the shares in a Dealing account. You can't transfer shares in an ISA or SIPP. You might want to gift the shares for tax purposes, as part of a divorce settlement, or to pass on wealth to your children.

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Personal injury settlements are usually deemed separate property in a divorce. However, the exact circ*mstances of the injury, the type of compensation, and possible commingled funds can affect the property classification and marital property division.

Texas does not have personal income taxes and does not tax personal injury settlements or verdicts. As with all federal tax laws, there are exceptions to the rule. Settlements or verdict awards from breach of contract lawsuits that involve personal injuries are subject to taxation by the IRS.

Types of Personal Injury Settlement Payouts in Texas

They can either be received as a lump-sum payment or as a structured settlement. While lump-sum payments provide immediate access to funds, structured settlements offer the benefit of multiple scheduled payments over time, providing ongoing financial support.

A spouse who, after ending a marriage of a decade or longer, finds themselves unable to meet their basic needs, may be considered for maintenance. This ten-year mark is crucial in the evaluation process for determining eligibility for such support.

What personal assets are protected in a lawsuit in Texas? ›

Texas law itself provides a substantial amount of protection for certain assets. In most cases, these include your homestead, a specific amount of personal property, retirement accounts, 529 college savings accounts, life insurance and annuities.

It's important to understand there is a significant difference between a homestead property and non-homestead property. In divorce, a divorce Court is prohibited from ordering the sale of homestead property unless by agreement of the parties or upon final judgment.

In conclusion, separate bank accounts can retain their status as separate property in Texas if certain criteria are met. Understanding the intricacies of separate and community property is essential, especially when funds from different sources are commingled.

Fam. Code § 3.002, all property acquired during the course of a marriage, with a few exceptions like gifts or inheritances, is considered the joint property of both spouses. The presumption of joint ownership extends to various assets, including real estate, bank accounts, investments, and yes, vehicles.

Everything acquired during a marriage is community property unless a spouse can prove (or the spouses agree) that it is separate property. Separate property is property owned before marriage, or acquired during the marriage as a gift, through inheritance, or as part of a personal injury settlement.

Dividing assets in a divorce can become complex when a family business and shares are involved. Options include an amicable split, retaining shares as a 'sleeping director', buyout, selling shares to a different director, selling the business, or letting the courts decide.

Gifts to spouses: When you give stock to your spouse, it's generally not subject to any gift tax, no matter the value of the stock involved. Giving while alive or upon death: There are also different tax implications when giving stock during your life versus doing so upon your death.

Contact your broker to get the appropriate forms to complete. The process will be simpler if the new owner also has or will have an account with the same broker, because no change in the actual registration of the shares will be necessary. The broker will simply make the transfer on its own internal books.

In cases where stock is held only in one party's name, often received as a work benefit, the stock will be at least partially marital property; property acquired before the marriage is not marital, but the increase in value is marital.