Family Law Attorneys Handling Complex Division Of Stock Option Claims
Corporations, in particular technology companies, are increasingly using stock options as a means of compensation. Some of these stock options have complex rules that govern how and when the options can be executed. Corporations also use various deferred compensation programs to incentivize the performance of employees and provide golden parachute severance packages for high-level executives.
These forms of compensation can comprise a very high portion of a couple’s marital estate, but they remain “paper assets” until those assets are actually monetized. On the other hand, some stock options are essentially worthless. Deciding what is valuable and what is not worth fighting for is a critical step during the divorce process.
Placing A Value On Stock Options And Deferred Compensation
When a marital estate contains stock options or another form of deferred compensation, it is important to properly value such assets. The attorneys at the Lauzon Paluch in Los Angeles, California, have extensive experience in complex property division matters. With the help of financial professionals such as accountants and executive compensation specialists, we place realistic values on deferred compensation such as stock options, sales commissions and golden parachute packages. Thus prepared, we then vigorously represent our clients in settlement negotiations or in court.
Some companies place restrictions on the sale or transfer of stocks included in a compensation package. At our firm, we have creative ways around these problems such as:
- Negotiating the transfer of other assets as part of a property settlement
- Creation of a trust to hold the proceeds of stock options after they are eligible for execution
- Inclusion of provisions in a property settlement that divide the shares after the options have been executed and the stock is vested
Rest assured that the lawyers at the Lauzon Paluch will protect your rights and interests at all stages of the legal process.