When you are going through a divorce, property division is one thing that you have to consider. For people with considerable assets, this can be rather complex. There are several different types of assets that you may have to deal with. Stock options are one of these types. Our readers in Nebraska might be interested in learning about stock options and how to handle them in a divorce.
There are two types of stock-related assets that can often prove challenging to divide. These are restricted stock and stock options.
Restricted stock is shares of a company that are given to employees but that can't be transferred until certain requirements are met. Restricted stock is given at no cost to the employee.
Stock options are a right given to an employee to purchase stock in a company at a later date. The price of these is set. The premise behind stock options is that the employee can buy cheap and sell high for a profit.
When you are going through a divorce, determining the value of these assets can be difficult. One of the first things you have to do is to determine if the stock options or restricted stock exists. In some cases, these might be hidden assets, so investigation is necessary. From there, the assets must be valued so that you can ensure that you get your fair share during property division.
There are many other factors that can come up when dealing with these assets. It is vital for you to cover all the bases when you are dealing with them. Working with someone familiar with these aspects can help you to decide how to handle this situation.
Source: Forbes, "Dividing Stock Options And Restricted Stock In Divorce" accessed Jan. 30, 2015