Best Divorce Lawyers in Newport Beach, CA

If you or your spouse are granted stock options or restricted stock units (RS Us) as part of your compensation, it’s crucial to make well-informed decisions to safeguard your interests in these assets during a divorce. The process can be intricate, with complexity levels varying based on the type of stock award, acquisition timing, and vesting date. RS Us share a close connection with stock options, yet it is crucial to grasp the nuanced yet significant distinctions separating the two. A stock option is a contractual agreement ensuring the holder’s ability to buy a company’s stock at a set price after a specified date. This is especially appealing for employees in expanding firms, as the stock’s future value could surpass its current worth significantly. An RSU represents a commitment to provide the holder with company stock in the future, without requiring payment upfront. Once vested, RS Us become taxable at ordinary income tax rates. Often utilized as incentives, RS Us serve as “golden handcuffs” to retain top-performing employees within an organization. For more information about splitting stock options or RS Us during a divorce, visit our website:...