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Complex assets in a divorce

On Behalf of | Jan 26, 2022 | Divorce |

Financial holdings get complex in a divorce involving executive employees. However, your divorce in New Albany, Ohio, can still achieve equity when the starting focus is on your assets. These are anything you own, which includes pets, furnishings and issues directly related to money. Tallying these assets makes sense, but executive spouses do have other assets to include.

The executive compensation plan

Executive compensation falls under two categories of stock investments that employees receive. Executives can receive these stocks instantly or through a contractual term. Executive members of a company are valuable to their business’s success, so compensation plans help to motivate these leaders. These plans are also how employers give incentives for longevity. It’s important to consider these plans because finding them and dividing them might call for professional help.

Stock options

Stocks are a common subject in a divorce. Those that executives get, however, don’t fall under the same category of marital property. Options are stocks but with different contractual clauses. Like options sold to the public, executive options give employees contractual rights. At a set date and set price, employees with executive options get to lock in price discounts for future buys.

Restricted stock awards

Unlike delayed-stock options, stock awards are a direct form of payment. Anyone who receives stock awards owns the actual stock immediately. The restriction is how and when those shares can be sold. The advantage of a stock award is the cost it proposes to the executive member. To receive stock immediately means you don’t buy it. In stock options, on the contrary, you need to buy the stock. Your price just gets discounted to what you’d pay when the option first started.

Your divorce in Ohio

Spouses can be entitled to the executive compensation of their spouses. The employment clause is what might be a factor here. Defining executive stock as marital property starts with confirming the vesting periods involved because no one can obtain stocks that haven’t vested and or been issued to anyone.