Divorce can significantly impact your assets and overall wealth. A prime example of the impact divorce can have on an individual's personal finances is the recent divorce case involving Best Buy's CEO. The CEO's divorce led to the sale of $17 million shares in the company, according to a company statement and filing.
The CEO ended up selling roughly 20 percent of his stake in Best Buy. The company said the CEO sold the shares to help pay for his high-asset divorce settlement. Individuals who own significant assets or shares in the company may have to take similar action during divorce depending on the specific divorce settlement.
Just like in this case, divorce settlements can include an agreement to use stock sales to help pay for some of the settlement agreement. It is not uncommon for spouses to have to sell or split their stocks during the divorce process, especially for couples involved in a high-asset divorce where there are more assets and property to be negotiated and divided.
Reports predict that the CEO of Best Buy will have to pay a substantial payout to his ex-wife due to the amount of wealth they gained when he became CEO of the company a year ago. In addition to the assets they gained after he became CEO, they probably have a significant amount of wealth from other investments and property.
High-asset divorce cases like this one can be difficult to go through, especially if one spouse is required to pay their ex a significant portion of their wealth under the terms of the divorce decree. It is important for individuals getting divorced to understand how their assets will be divided and what options are available to help pay the divorce settlement. Individuals thinking about getting divorced should contact a divorce attorney for advice on their specific case.
Source: FindLaw, "Best Buy CEO's Divorce Forces Him to Sell Stock," Betty Wang, Sept. 12, 2013