Stock Options and Restricted Stock and Your Divorce
According to Forbes, many start-up companies offer their employees stock options and restricted stock. Sometimes employees are offered these options in place of compensation. If your partner received stock options or restricted stock as part of his or her compensation package, these options and restricted stock could be potentially quite valuable. If these stocks were acquired during the course of your marriage, they might be very valuable indeed. Unfortunately, this “income” wouldn’t appear in a bank account or tax form. So a spouse may only learn about stock options if his or her partner is truthful about all assets.
Do you think your partner might have received stock options or restricted stock as part of his or her compensation package? Do you have questions about what your options might be when it comes to claiming this as marital property. Schneider & Onofry, P.C. is a divorce law firm in Yuma, Arizona that can assist you with evaluating all marital assets. In some cases, finding out a partner’s total compensation package can be complex, and may even involve subpoenas and court orders. And even when these stock options are discovered, it can sometimes be very difficult to put an accurate value on them. Sometimes companies might sell stock options to their employees for a value that is well below market value, or the value of the stock might be restricted until a later date (this is often done when an employee cannot claim the value of the stock right away, but must wait to claim the value in the future). Determining the value of this stock can be quite complex, and your right to claim this stock (if it is not currently redeemable) might depend on where you live and where you are filing for divorce.
Before taking steps to settle with your ex, it is important to understand your full financial picture. Even if you think you know, a lawyer like Schneider & Onofry, P.C. in Yuma, Arizona can help you look closer. Our firm works closely with families going through divorce involving complex financial situations.
Other Things to Consider When Dividing Stock in a Divorce
If you or your partner own stock, you may also need to carefully consider how you’ll divide these shared assets. Couples should take into account not only the value of the stock on the day they are divided, but also the potential tax implications if the stocks were to be sold. Sometimes cash on hand might be more valuable than stocks because cash on hand might already have the taxes paid on it, while stocks, when redeemed for their value, might be worth less than the value because taxes will need to be paid on gains. However, when dividing stocks, couples should also consider the value of stocks that may have gone down in value as well. These stocks could also have value because they can be used for tax purposes to offset gains made when more valuable stocks are sold. When dividing stocks, couples may need to carefully consider not only what they paid for each stock, but also the gains and loss of each stock, and the potential tax implications of selling these stocks.
Have questions about dividing stocks in your divorce? These matters can be highly complex, and couples often hire accountants, forensic accountants, and other specialists to help them navigate the difficult questions that can arise. A divorce lawyer like the attorneys at Schneider & Onofry, P.C. in Yuma, Arizona may also be able to assist you with your case and help you take the next steps to protect your rights.
Divorce when your financial situation is complex can be particularly challenging. The decisions you make in your divorce can have serious implications for your financial future as well as for your retirement and financial security. You and your partner may have worked for years to build a financial safety net. Don’t let divorce cut that net. Schneider & Onofry, P.C. is a Yuma, Arizona divorce law firm that may be able to assist you. Reach out to us today.