How does a stock’s dividends get split in a divorce?

I’m recently divorced and had 10% ownership in a company an per the divorce decree she was intitled to 50% of its value. I paid her for the 50% value $100K. Would she be entitled to 20% of my yearly dividend from this stock since she was bought out

Asked on May 31, 2012 under Family Law, Illinois

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The stoks are an asset that was obviously divided.  Was there a formal agreement as to the value that you were giving the stock and her agreement to take the cash up front as her share and to waive any rights in the future?  There should have been and if not then seek help asap.  If the buy out was truly a buy out of her share then the stock is all yours at this point in time and you would collect the dividends alone.  Good luck.


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