In an unexpected cash deficit position, small business owners sometimes find it necessary to liquidate a portion of their assets as opposed to their entire business.
Whenever you liquidate a small portfolio or convert the stock to cash, it has financial consequences.
For example, you may be taxed on capital gains or lose the portfolio's future appreciation.
A liquidation specialist at a brokerage firm can help you anticipate the tax consequences of the portfolio liquidation and advise you about an approach that will maximize the return on your investment.
When you look at your stock portfolio, make note of the number of shares you own of each company's stock and their current value.
"For example, if the wife keeps a house with $500,000 equity, this asset generally has a gain exclusion," he said.