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Family Law: Assets

Property Settlements Involving Stock Options

Pursuing a Fair Valuation of Complex Assets

When one or another spouse is going to come out of your divorce settlement holding stock options, you are going to want to make sure those options are accurately valued and taken into account in the overall division of assets and debts.

At the Diamond Law Firm in Los Angeles, we have the financial experience to accurately evaluate divorce cases involving stock options. Contact us to schedule a free consultation with one of our experienced California attorneys.

Evaluating the Unique Characteristics of Each Stock Option

If one or both parties to your divorce case have acquired stock options, it will be necessary to accurately determine the value of those assets at the time your divorce or separation was initiated before a fair property division can take place.

Stock options are a common part of employee compensation packages at large companies, especially for employees at a managerial or executive level. Employee stock options have many complexities that can complicate the process of valuing them in a divorce case, including:

  • Limits on when they can be exercised
  • Vesting schedules based on years of service with the employer
  • Non-transferability provisions
  • Qualified or non-qualified status for purposes of taxation

Every stock option is unique and needs to be reviewed separately by an experienced financial expert. Our firm is able to work closely with our experts and effectively evaluate the work product of opposing parties' experts.

We will work diligently to pursue a property settlement that appropriately incorporates the accurate value of any stock options held by either party. Contact us to discuss your concerns about the impact of stock options with a knowledgeable divorce lawyer.

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