jss001
New
Reged: 05/12/08
Posts: 15
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6 mos into a divorce - preparing financial disclosures. Naturally, STBX has nothing but debt in her name. I was granted stock options and restricted stock units by my employer during the marriage that haven't vested yet. Are these subject to division? I'm naively hoping they aren't because I would never realize the value if I were to change jobs.
Also, I have approximately $40,000 in my 401k. Balance was around $12,000 before we married and my employer added $6,000 after the date of separation. Will we divide the entire balance or the $24,000 difference between date of marriage/separation.
We're in California. Thanks.
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theanswerguy
Platinum
Reged: 04/12/07
Posts: 2190
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In the in the California case In re Brown, 15 Cal.3d 838, 126 Cal.Rptr. 633; 544 P.2d 561 (1976), the divorce Court retains jurisdiction to apportion the unvested benefit at some point in the future only if and when that benefit is paid.
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Never let your sense of morals get in the way of doing what's right. Isaac Asimov
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KGrow
Platinum
Reged: 01/27/06
Posts: 3153
Loc: Colorado
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I don't think you'll be able to successfully convince anyone that the options have no value. You can do as answerguy suggests and divide it once it is vested or you can try an negotiate a settlement value now. Her take will be somewhere between $0 and ((current_market-strike)*shares-taxes)/2.
The $6000 401k contribution came in while you are still married and so is likely to be subject to division. You get $26,000 and she gets $14,000 is how I call it.
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jss001
New
Reged: 05/12/08
Posts: 15
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So we're talking about $25k in RSUs (at todays price) that will vest between 2009-12 and roughly 3000 stock options (varying grant prices, but all are underwater). Any chance I can propose that proceeds from either go to a trust or college fund for our 6 year old son? I'd be okay putting my 50% in. The thought of just giving this money to my ridiculously irresponsible STBX makes me sick. Realize that all of this isn't "fair" but would prefer to see our son benefit rather than either of us. Thanks.
Edited by jss001 (05/17/08 12:58 AM)
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Jada
Platinum
Reged: 06/02/07
Posts: 3345
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[quote]So we're talking about $25k in RSUs (at todays price) that will vest between 2009-12 and roughly 3000 stock options (varying grant prices, but all are underwater). Any chance I can propose that proceeds from either go to a trust or college fund for our 6 year old son? I'd be okay putting my 50% in. The thought of just giving this money to my ridiculously irresponsible STBX makes me sick. Realize that all of this isn't "fair" but would prefer to see our son benefit rather than either of us. Thanks. [/quote]
You can ask your stbx if she would do that with her share of the marital asset, but a court won't order her to. It is her share of the asset, not the child's. You can do whatever you want with your portion of the asset.
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KGrow
Platinum
Reged: 01/27/06
Posts: 3153
Loc: Colorado
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You're each allowed to put your own assets in the children's name in divorce. If your ex agrees to this, you're good. You're just not allowed to do the reverse, put children's assets (i.e. child support) in your name.
It sounds like $12,500 is what's at stake here. Be sure to put that in perspective with the other assets that you're dividing.
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