Divorce and Equity Compensation 101

If you or your spouse earns restricted stock units or stock options as part of their compensation, make sure you know the basics before getting too far into the divorce process.

In the Gray Divorce Podcast I begin by explaining what equity compensation actually is -- a form of payment where employees receive company stock or options in addition to salary and bonuses. 

These assets can include:

• Restricted Stock Units (RSUs)

• Incentive Stock Options (ISOs)

• Non-Qualified Stock Options (NQSOs)

• Performance Stock Units (PSUs)

Host Andrew Hatherley and I discuss why these awards are often misunderstood by both financial advisors and family law attorneys. We also explore why they can represent a significant -- but sometimes understated -- portion of a family’s wealth.

Not all states treat this compensation the same. Statutes and case law differ among states. To gain a deeper understanding of equity compensation in divorce, listen to the full 30-minute podcast here.

Silicon Valley Tech Worker Who Earns Restricted Stock Units ("RSUs")

Laurie Itkin, CDFA, can be reached at www.TheOptionsLady.com