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Stock Options and the Marital Estate

Posted by Chris Peterson | Nov 26, 2013 | 0 Comments

Stock Options and the Marital Estate

stock options and divorceOne of the most difficult aspects of a divorce is the division of assets acquired during the marriage. Within this dicey area of family law is the even more difficult task of splitting stock options, which requires a detailed analysis of the worth of said options by a neutral financial expert.

Stock Options and the Marital Estate

Unlike the value of a home or car, the value of a stock option can vary daily, sometimes hourly, requiring your divorce attorney to negotiate with your spouse's lawyer for a mutually-agreeable value to facilitate the division. If you are engaged in a high-net worth divorce and would like additional advice about the effect of your stock options, contact a Montgomery County divorce lawyer today.

The Valuation Procedure with Stock Options

As you may know, vested stock options are considered valid marital property in every U.S. state, including Texas. A stock option is a contractual arrangement between a company and his employer for a certain set of stocks at a specified price. This arrangement can become extremely valuable if, upon the date to cash in, the stocks are worth more than when originally granted.

As such, upon divorce, each spouse is entitled to a share of the worth as valued at the time of divorce. If you are the non-employee spouse, your lawyer will help you complete discovery of the value of your spouse's employment compensation, including a verification from his company's human resources department (and possibly a forensic accountant) that all employment compensation has been disclosed.

Discuss Your Stock Options Today

If you are contemplating divorce and believe stock options may be at issue in the dissolution of your marital property, contact a Montgomery County divorce lawyer today at the Peterson Law Group: 979-703-7014 or 936-337-4681.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of Brazos 1031 Exchange Company.


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