Stock options and restricted stock units are increasingly common forms of compensation for executives and technology professionals.
These assets can represent substantial wealth, but dividing them during divorce requires careful legal analysis.
Understanding Stock Options
Stock options give an employee the right to purchase company stock at a predetermined price.
If the company’s stock price rises, the options may become extremely valuable.
Restricted Stock Units
RSUs are company shares granted to employees that vest over time. Once vested, they become actual shares of stock.
How Courts Divide Equity Compensation
Courts typically analyze:
• When the stock was granted
• Whether the grant rewards past work or future work
• The vesting schedule
• The value of the shares
Because these assets can fluctuate dramatically, careful valuation is essential.
