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It is common for California technology companies to offer employees stock options, such as restricted stock units, as incentives for excelling at their jobs, job loyalty and work well done. While these types of stock options do not have the initial dollar value of direct compensation, their value fluctuates with the company’s success and the market.
When married employees of these companies seek a divorce, many questions arise as to whether these stock options are marital property and, if so, how these stock options should be divided between the spouses. At Moradi Saslaw, we understand the importance of stock options and restricted stock units to both employees and their spouses when valuing and dividing assets in a marital estate.
Our start-up and equity compensation attorneys in San Francisco are:
Contact Moradi Saslaw in San Francisco to discuss equity compensation in California and its potential effect on your overall stock portfolio. We want to help you resolve your property division and asset disputes effectively and beneficially.
While asset division in any divorce has the potential to be complicated and stressful, those divorces with complex assets can be incredibly taxing. Do not trust the division of your equity compensation to a law firm without the experience needed to solidify and protect your interests.
At Moradi Saslaw, we make it a priority to do the following and more on your behalf:
Call or contact Moradi Saslaw in San Francisco today to discuss our approach to start-up and equity compensation divorce. We want to answer your most pressing questions and meet with you at a time that suits your schedule.
A fair and accurate valuation of complex assets, like equity compensation, is essential in any California divorce. At the start of any divorce, a couple is required to provide a detailed asset inventory. Any assets without an immediate and apparent value must go through a valuation process.
The vesting and distribution schedules for equity compensation make this type of property extremely complicated to value, requiring specialized accounting practices. An experienced start-up and equity compensation law firm is crucial when setting forth to calculate the worth of these assets accurately.
Equity compensation promises an employee stock upon meeting certain conditions. Once these conditions are met, the employee receives the now taxable stock based on its fair market price. This price may rise or fall just alongside the success, or failure, of the company.
The vesting and distribution schedule of this stock is imperative because these schedules mandate when the employee received the equity and how much that equity is worth.
California is a community property state. This means any assets acquired after marriage are considered community property and divided equally between the spouses.
This is why the vesting and distribution schedule of equity compensation is so crucial. Any stock that that was vested and distributed before marriage is considered separate property. Whereas stock that was vested and distributed after marriage is subject to division as community property per California law.
Regardless of how you or your spouse received equity compensation, Moradi Saslaw is available to conduct a detailed analysis of this complex asset to determine if it is subject to marital property division laws. We will also review any other assets, including real property, to provide you with an accurate picture of your divorce standing.
Whether you choose to pursue resolution through settlement or litigation, our family law attorneys will fight to preserve all of your assets and protect your best interests. Contact Moradi Saslaw in San Francisco today to meet with a start-up and equity compensation attorney in a confidential consultation.