Divorce is an expensive process that often requires individuals to liquidate assets to get through it. The chief executive officer of Best Buy just validated this assertion by citing his recent divorce for the need to sell some of the electronic retailer's stock.
The stock that the Best Buy executive sold was valued at $10.4 million. He sold 350,467 shares at $37.01, with shares trading for $37.90 a few days after the sale. However, a company spokesman wanted to make clear that the man was not selling the stock for any perceived negative notion for the company's outlook. This is especially important considering that the man has been credited with helping the electronics retailer to turn around with a stock that has increased by 207 percent this year. This increase is more than 190 percentage points more than the increase in the Standard and Poor index for the comparable period.
Stock sales may not always be indicative of the company's well-being since sales can occur for a variety of reasons such as a divorce. However, executives may purchase more shares because he or she believes the value of the shares will go up. These sales are required to be disclosed to the SEC.
An attorney with experience in divorce matters may be able to assist someone who is going through the process of divorce. Such an attorney may be able to offer advice on such matters as property divisions, alimony and other forms of financial support, and may also be able to suggest and negotiate modifications to earlier decrees and agreements should subsequent events prove that to be necessary or desirable.
Source: USA Today, "1 reason to sell Best Buy stock: D-I-V-O-R-C-E", John Waggoner, September 12, 2013