Stock Options And RSUs In Minnesota Divorce
As assets to be divided in a divorce, stock options and restricted stock units (RSUs) are among the more complex types of marital property. The complexity stems from the unique restrictions on the stocks themselves, as well as the valuation and the ability to access them. However, if they are marital assets, they must go through property division.
At Dwire Law Offices, attorney Todd M. Dwire has helped with family law and asset division cases of all types. As a lifelong Lakeville resident, he’s dedicated to protecting our family law clients and brings a certain passion and kindness to the problems facing the people he works with. The complexities you face in your stock option division case are well within his skill to help you resolve.
Retirement Worries In Divorce
Most people going through divorce do not think much about the realities facing their retirement and employer-provided assets. As Minnesota divides marital assets on an equitable basis rather than an equal basis, the assets in your retirement accounts acquired during marriage must go through that division. If you’re approaching retirement, this can come as an unpleasant, unsettling shock.
That said, you are not without ways to protect yourself or preserve what you’ve built. You must, however, enter into these negotiations in good faith. And we will help you strike a balance in these higher stakes discussions.
Valuation And Division Of Variable Assets
Employee stock purchase plans and RSUs in Minnesota divorce proceedings are complicated by two factors: their varying value and their status as employee benefits. But once the court or the parties establish a valuation, you may need to pursue a qualified domestic relations order to divide any employee benefits in a retirement account.
These types of assets are often restricted as to when a person can truly claim them, as stock options can be withheld until the employee is fully “vested.” This wait can be a confusing factor in divorce. Essentially, stock options like these are deferred compensation; in divorce, the question of what is marital versus nonmarital property is one that needs an answer.
Legal Process And Discovery
Financial disclosures are central to divorce in Minnesota and are a key part of the first step in getting your divorce. Gathering documentation may take considerable time, but once you have given us what you have, we can get to work taking the next step. And that next step may be contacting a forensic accountant.
The forensic accountant’s role in divorce is to help you uncover any potential hidden assets. Divorces in Minnesota where hidden assets are found are extremely complicated, and the law may penalize a party. Part of that penalty may be in taking actions against the retirement assets of a stock option or an RSU. It is vital to be honest in your disclosures to avoid detrimental impacts to your retirement.
Contact Our Office In Lakeville For Answers
We have built a practice around treating our neighbors in Lakeville with kindness, decency and care. The process of a divorce is already large in their minds. The real unsettling parts of dividing an estate can be even more overwhelming.
Attorney Dwire is here to provide you with a realistic, thoughtful plan of action to protect the assets and wealth you’ve built. And he’s ready to work as hard as necessary to get the asset division outcome you need. Reach out today to get started by calling us at 952-232-0179 or sending an email using this form.