Stock options, both vested and unvested, are considered assets in a divorce that can be divided between the spouses. The most common way to divide stock options is for the divorcing employee to retain the stock options and award the nonemployee spouse other marital assets of equivalent value as an offset.
How are bonuses calculated in alimony?
If you receive the bonus during the divorce proceedings, it is subject to California’s community property rule, meaning your spouse is entitled to half the value. The courts are not trying to hold you accountable for all income you take in each month, just what income you can count on regularly in the future.
Do stock options count as assets?
Yes and no. Until you exercise your stock options, they remain on the company’s books as an asset of the company and a benefit to you. Only when you own the options are they considered an asset in your portfolio.
Can a spouse have unexercised stock options in a divorce?
If a spouse has unexercised stock options, the first step will be to determine which options, if any, are considered marital. One might assume that any options granted during the marriage are considered marital. However this assumption is not entirely correct. Options are often granted as a reward for past work and as incentive for future work.
How can I transfer my stocks after divorce?
A copy of the court order or divorce decree is attached. The transfer is most easily executed when the recipient spouse has a separate account at same brokerage as the transferring spouse. The recipient can move the stocks to another broker later.
When do stock options vest in a divorce?
That option will be considered “unvested” until 2015. As you can imagine, a vesting schedule will complicate the division of stock options incident to divorce even further. Consider the above example where the option was issued in 2005 but not vested until 2015.
Can You subpoena restricted stock in a divorce?
With both mediation and collaborative divorce there is no ability to subpoena records. You will have to accept your husband’s word on all of this!) Evaluate the worth of the options or restricted stock.
