Navigating Stock Sales During Divorce Proceedings Legally
Can I Sell Stocks From My Brokerage Account After Filing for Divorce Without Violating the Automatic Temporary Injunction?
Hi, I’m Tulsa Dads.Law attorney Clint Hastings. I practice here in Tulsa, Oklahoma, focusing on fathers’ rights, and this is my 25th year practicing.
Navigating Stock Sales During Divorce
This comes up often, especially when the stock market fluctuates. You may want to sell stock to prevent losses, or maybe you’ve picked a winner and want to take profits. People with day trading accounts also wonder how the automatic temporary injunction (ATI) affects them.
First, you cannot hide transactions or move money in secret—that would clearly be a violation. Spending profits or withdrawing funds from the brokerage account could also violate the injunction. You must account for any transactions that take place.
Handling Stock Transactions Responsibly
The bigger issue often arises when a sale results in a loss. For example, you sell stock, it drops, then rises again. Your spouse may argue you made a bad move, that you should be held accountable for the loss, or that you needed her approval. But generally, a judge isn’t going to second-guess stock decisions if you acted in good faith—especially if you traditionally managed that account.
Some might argue the ATI freezes such accounts, but as long as your actions are consistent with how you normally handle the account, and you’re acting in good faith, it’s unlikely a judge will find you in violation. However, if you usually make decisions jointly and suddenly act unilaterally, that could be problematic.
Consultation for Your Specific Situation
At worst, it could be viewed as a technical violation. But unless you acted in bad faith, it’s not likely to be seen as a willful violation of the order.
That said, you should still run this by your lawyer. If it’s a matter of avoiding a huge loss or locking in significant gains, you probably can’t wait a week for a consultation. Acting reasonably and in good faith is key. But if it looks like an ongoing issue, your attorney may need to work with your spouse’s attorney to create a plan.
Call Tulsa men’s divorce attorney Clint Hastings at 918-962-0900 if you need a consultation on this or any other family law issue.
