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California Legal Representation In Divorce And Separation For Over 55 Years

Photo of Mark A. Erickson And Matt A. Erickson
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Experienced San Jose Stock Options And Restricted Stock Units (RSUs) Attorneys

When getting divorced, proper division of complex financial assets is critical. If much of your wealth is tied up in stocks, the division of property in your divorce can become complicated. These assets could include RSUs, stock options, employee stock purchase plans, pre-IPO stock options, and other types of equity compensation.

At Erickson Family Law LLP, we have more than 55 years of combined experience with these complex family law cases. We are highly skilled at both negotiation and litigation if there is a dispute about asset ownership or the difference between marital property and separate property. Our attorneys are also California Board Certified Family Law Specialists, so you can trust in our experience and knowledge to handle your stock options division matter.

What Types Of Stock Options Are Subject To Division In Divorce?

The following are stock options that may need to be divided:

  • RSUs: Restricted stock units have some limitations, such as a vesting period.
  • Stock Options: Stock options provide the ability to purchase stock at a pre-determined price.
  • Employee Stock Purchase Plans: These plans provide discounted stock prices for employees.
  • Pre-IPO Stock Options: These are stock options set up before a company’s initial public offering.
  • Equity Compensation: This umbrella term refers to compensation other than cash, such as the RSUs or stock options noted above.

Our helpful and knowledgeable legal team will guide you through the entire process and ensure that nothing is overlooked.

How Are Stock Options Divided In A California Divorce?

California is a community property state. This generally means that property accumulated during marriage is supposed to be divided equally between both spouses. A nonemployee spouse may have a right to stock assets if they were granted or vested during the marriage. Stock options obtained before a marriage or after a divorce are typically viewed as separate property and not subject to division. There is not a hard and fast rule on how to characterize and divide these types of assets and the specific details of the plan, grants, and vesting schedules may allow for alternative arguments about whether the assets are community property or separate property.

Can You Divide Stock Options And RSUs From Private Companies?

During the division of assets, you may be able to divide stock options and RSUs from private companies, but it can be more complex since they are not publicly traded. Our experienced and trusted San Jose family law attorneys can review your case and provide honest and transparent guidance.

Contact Us Today To Learn More

You need an experienced Santa Clara County lawyer, so email us or call 408-840-2393 today to set up a consultation.