Divorce is not for the faint of heart, and this can be even more evident when there are millions of dollars involved. When you and your spouse have several high-value assets to divide, it’s important to understand your finances and ensure that you’re getting a fair settlement. If you reside in New Jersey or Pennsylvania, here is some pertinent information about splitting your assets.
Stock options
In some instances, employers will give their workers the option of buying into company stock in the future based on the current stock market price. This option is provided as an incentive for hard work and dedication to the company. While this incentive can be beneficial, there is a catch. Stock options, as well as restricted stock, have vesting periods. This means that employees cannot exercise their buying power for a certain time period, which is usually between one and five years. In a divorce, the executive’s spouse might be entitled to part of the value of the stock.
Restricted stock awards and units
Restricted stock units or awards are other incentives for executives. Employers often give these awards more commonly than stock options, and restricted stock awards also cannot be sold immediately upon receipt. Recipients must wait for the shares to vest before gaining a profit. Employees who are fired or leave the company will forfeit their rights to restricted stock. When the restricted stock vests, the whole value will be taxable at standard income tax rates. Restricted stock awards should be rightfully divided in divorce as well.
Speak with a family law attorney to assist you through the divorce proceedings. This may increase the chances that your assets will be fairly divided in a divorce.