|
During your property divorce proceedings, you are likely to run into a plethora of difficult financial obstacles that can slow down the process, and a property divorce with stocks and stock options can easily be one of those issues. Many companies offer stock and stock options as part of their compensation package. In some cases, these numbers turn out to be relatively small. However, in cases where the stocks or stock options have become more than an interest bearing savings account, the financial figures can be rather large. CEO and executive packages often offer some well padded stock options for their high level executives, and in many cases these stocks can be considered in the marital property divorce settlement.
Vested options are usually a straightforward ordeal during your property divorce settlement. These figures can be calculated into the annual income and become part of the overall assets which you and your spouse are separating. However, unvested stocks can be a little less straightforward and might not be assumed to be part of the property divorce unless you push for it.
Pushing to include unvested stock options in your property divorce settlement is the equivalent to attaching future earnings to the settlement. It can be done, and in most cases it should be done. Many soon to be ex—spouses do not push for any type of future earnings claim because they do not understand the value or they feel that they are being unfair. The value of unvested stock options can be calculated through a predictable and accurate formula that the courts use regularly known as the time rule formula. The time rule formula is a mathematical method of deriving the intended value of unvested stocks in the future and attaching that figure to the overall stock value of a compensation package or a marital asset package.
Ignoring stocks and stock options during the property divorce settlement proceedings can end up seriously damaging your financial security in the future. All marital assets are considered joint property because it is. Marriage, even a bad one, has been a causative catalyst in the overall family wealth and thus can not be considered to be solitary property. When going over the potential figures with your divorce lawyer, you need to consider whether or not he or she has the experience needed to deal with both vested and unvested stock options. Most people with complex financial terms find that their property divorce settlement is much more fair when they hire a financial professional to assist.
|
Subscribe
