What Happens to Stock Options & RSUs in Divorce?
Some divorces are financially simple. Others are not.
If you or your spouse receives stock options, RSUs, restricted stock, bonuses, or other executive compensation, your divorce may involve more than just dividing bank accounts, retirement, and the house.
At Leslie Copeland Law, we handle complex and high-asset divorce cases, including cases involving business interests, investment accounts, executive compensation, and stock-based benefits.
What Are RSUs and Stock Options?
Many employees, especially executives and high earners, receive part of their pay in stock or stock options.
These benefits may be called:
RSUs;
restricted stock;
stock options;
equity awards;
performance shares;
bonuses; or
long-term incentive compensation.
These can be valuable assets, but they are not always easy to understand.
Are They Divided in Divorce?
Sometimes, yes.
If stock or stock options vested during the marriage, they are usually marital property.
The harder question is what happens when the stock was granted during the marriage but has not vested yet.
In plain English: the court has to figure out whether the employee has already earned the stock, or whether it is really payment for future work after the divorce.
Why the Paperwork Matters
A vesting schedule is helpful, but it is not enough.
To understand whether stock or RSUs should be divided, we need to review the actual documents that explain the benefit. These may include the stock plan, grant agreement, award agreement, employment agreement, or other company documents.
Those documents tell us things like:
when the stock was granted;
when it vests;
whether the employee loses it if they leave the company;
what happens if the employee is fired;
what happens if the employee dies or becomes disabled;
whether the stock was meant to reward past work or encourage future work.
Those details matter.
Stock Benefits Can Also Affect Alimony
Even if stock options or RSUs are not divided as property, they may still matter for alimony.
For example, if a spouse receives income from exercised stock options, vested RSUs, bonuses, or other equity compensation, that income may be considered when deciding alimony.
This is important because some people receive a large part of their compensation through stock and bonuses, not just salary.
These Cases Require Careful Attention
High-asset divorce cases often involve assets that are not obvious from a bank statement.
A spouse may have compensation through an employer stock plan, investment account, business interest, or bonus structure. If those assets are not properly identified, they may be missed.
That is why complex divorce cases require careful discovery and a clear understanding of the full financial picture.
We Handle Complex High-Asset Divorce Cases
At Leslie Copeland Law, we help clients with divorce cases involving:
RSUs and stock options;
executive compensation;
business interests;
investment accounts;
retirement accounts;
real estate;
alimony;
high incomes; and
complex marital property issues.
If your divorce involves significant assets, complicated compensation, or questions about what is marital property, we can help you understand what needs to be identified, valued, and divided.
Talk to a Trusted and Experienced Arkansas Divorce Attorney
Stock options and RSUs can be confusing, but they can also be extremely important in divorce.
If you or your spouse receives stock-based compensation, it is important to work with an attorney who knows what documents to ask for and what questions to ask.
Contact Leslie Copeland Law to schedule a consultation.
This article is for general information only and is not legal advice. Every case is different, and you should speak with an attorney about your specific situation.