Will I Get My Share of The Stock Options in Our Divorce?By Moskowitz Law Group, LLC |
The process of divorce can be exhausting, with so many aspects of your shared life that must be divided. Going through this process alone might leave you stressed, and details can be forgotten. One important consideration that many couples fail to address when discussing divorce is the division of stock options.
What is a Stock Option?
A stock option gives investors the right to purchase stock in a company at a set price. Stock options can be traded like other commodities, but they are also commonly included in employee benefit packages. If your spouse acquires stock options from their employer during your marriage, does this count as an asset that is on the table during a divorce?
In the case of Callahan v. Callahan (1976), a New Jersey ruled that because stock options were acquired over the course of the marriage, they are subject to equitable distribution so long as the stock option owner did not leave the company and that all Securities and Exchange Commission (SEC) regulations were followed.
Dividing Employee Stock Options During Divorce
To begin dividing employee stock options when negotiating a divorce, you and your attorney should first research their value. Properly evaluating stock options can be a complicated task, however, because this is a future asset with no guarantee of success. For a comprehensive analysis, it may be beneficial to utilize a professional accountant. You will also need to consider taxes and sales restrictions so that you are in compliance with any applicable regulations.
Let the Moskowitz Law Group Help with Your Divorce
If you are beginning the process of dividing your marital property, you could benefit from having a dedicated divorce attorney on your side. Proper asset division requires detailed accounting and the application of complex tax codes and regulations. The experienced New Jersey divorce attorneys at the Moskowitz Law Group LLC can guide you through every step of the process and fight for your interests. Call today to schedule a consultation.