Cash,and,Carry

　　Most couples treat savings and investments as common assets. In the event of going back from ‘our’ to‘mine’, these too need to be divided, a process that may turn out to be quite complex.
　　You can do a few things to make the transition smoother. The first step should be to calculate the share of each based on individual contributions. Cash shouldn’t be a problem when it comes to dividing the savings. Bank accounts that are held jointly can be terminated and the balance divided accordingly. However, dividing other savings requires extra effort.
　　A simple way to divide savings in the form of shares, mutual funds and fixed deposits is to liquidate them and share the proceeds. However, premature liquidation may mean you may lose out on the returns.
　　 Equitable Distribution
　　Stock market investments give best returns in the long run. If your stock portfolio is valued at less than the purchase price due to poor mar- ket conditions, exiting immediately will not be in your best interest.
　　Like bank savings accounts, you can hold demat accounts both individually and jointly. Shares from one account can be transferred to another via ‘off-market’transactions. However, you cannot change the name of the account holders or convert a joint demat account into single-holder account. The only option is to open individual accounts and transfer the shares into them. You will have to pay fees for these transactions if the destination account is not identical (held by the same persons).
　　Shares that have been pledged cannot be transferred without the consent of the lender.
　　Transfer of shares as a gift to demat accounts held by specified relatives (which includes spouse, children, parents, siblings and other lineal descendants) does not attract any tax. Under ordinary circumstances, income from such stocks is clubbed with that of the donor for taxation purposes. But there is no clubbing when the transfer is part of the separation agreement.
　　 Mutual Funds
　　You might have invested in mutual funds as well. In funds that offer tax benefits, you may also have to look at the lock-in period. Surrendering funds such as unitlinked insurance policies before the stipulated time (five years) means you may have to pay surrender charges. Even after this, you will get the money only after the lock-in period is over. Equitylinked savings schemes investments cannot be withdrawn or units transferred before the threeyear lock-in period.

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