Stock grants that vest over time


#1

I was given a stock grant during the marriage, where 1/3 vests during the separation period and the remaining 2/3 vests after the divorce is final. How does that factor into ED? Do you just value the entire grant at the time of separation and go with that?


#2

I’ll give my perpective while waiting for the “official” reply. I had a similar question. I understand that if the stock options or grant was earned during the marriage, then it is marital property and subject to ED unless you explicitly make another arrangement. So I believe you value the entire grant and split that once the different parts vest :frowning: I am in the same boat and I am splitting up all mine with my stbx. Sux… Well, one thing you could do is make a schedule of vesting that illustrates when they vet and what shares go to stbx and what shares go to you, and maybe accidentally leave off the last year of vesting on the schedule… then if stbx agrees to that… just kidding :slight_smile:

Best wishes during this difficult time, and Erin will probably add some feedback as well.

RH


#3

Since the grant was awarded during the marriage it is martial property even though it has not yet vested.


#4

I understand that it is marital property, my question is how is it valued? So do you look at the value on the date of separation for the unvested shares? Or do I have to give him half of the shares as it vests over time each year?


#5

It is valued at the date of separation plus or minus any passive appreciation or depreciation in value up to the date of distribution.