Options, RSUs, and Other Equity Compensation

We are equity compensation experts.

Options, RSUs, and Other Equity Compensation

The division of stock, performance units, stock options, and restricted stock units (RSUs) are common divorce issues in California because many Bay Area employees receive equity as part of their compensation packages. Not only is equity compensation likely to be deemed community property, but future stock options and RSUs may be taken into consideration for child support and spousal support calculations.

The valuation of equity compensation is critical because its value greatly impacts the community’s interest in those assets. Typically, a Court uses one of the following valuation methods:

  • Valuing the community’s interest as of the employee spouse’s date of employment or
  • Valuing the community’s interest on the date the stock options were granted by the employer.

Obviously, the first method will produce a valuation for the community that is much larger than if the second method is used.

Options, RSUs, and Other Equity Compensation

We are equity compensation experts.

The division of stock, performance units, stock options, and restricted stock units (RSUs) are common divorce issues in California because many Bay Area employees receive equity as part of their compensation packages. Not only is equity compensation likely to be deemed community property, but future stock options and RSUs may be taken into consideration for child support and spousal support calculations.

The valuation of equity compensation is critical because its value greatly impacts the community’s interest in those assets. Typically, a Court uses one of the following valuation methods:

  • Valuing the community’s interest as of the employee spouse’s date of employment or
  • Valuing the community’s interest on the date the stock options were granted by the employer.

Obviously, the first method will produce a valuation for the community that is much larger than if the second method is used.

Why Ford Family Law?

Ford Family Law attorneys are experts in equity compensation issues. We’ve represented founders, employees, and spouses in cases where current and future equity compensation represented some of the most valuable assets in dispute. When helpful, we call on our network of trusted corporate finance lawyers, tax experts, and other specialists to get you to a smart, strategic resolution.

Why Ford Family Law?

Ford Family Law attorneys are experts in equity compensation issues. We’ve represented founders, employees, and spouses in cases where current and future equity compensation represented some of the most valuable assets in dispute. When helpful, we call on our network of trusted corporate finance lawyers, tax experts, and other specialists to get you to a smart, strategic resolution.

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