This book will focus on the rights each spouse has under certain laws, situations, and circumstances, and how the division of the property will be decided by the court or through negotiation.
I have a situation where I had a number of un-exercised stock options on the date of separation (18AUG2007) and I'm not sure about valuation. Note that as of today, all of those options have been exercised, so there are "real" numbers available, but I'm not if they come into play since they were all exercised after the date of separation.
I realize there are some simple as well as more complex models for valuation, but what seems the most reasonable course of action here? Because all of the stock options have been exercised and their value realized, I suppose I could take each exercise date and post-tax (?) proceeds and discount them back to the date of separation. Not sure about what discount rate to use and how to handle the taxes.
Any feedback on this matter would be greatly appreciated. My wife and I are still trying to do the divorce without going "all out" with hiring attorneys, but this matter may be a bit more contentious and complex.
Wouldn't it matter if the stock had gone up or down since the date of separation? If you're trying to do this yourselves, you can decide however you like to divide these up. Do it as of the date exercised. Or guess whether it's gone up or down in the interim time. Whatever you do, make sure you're both happy with it so no one feels the need to come back later and reopen the case.
Since they've been exercised, their value has been established. The proceeds go into joint assets to be split. The taxes go into joint debts also to be split.
You can try to get the accounting done as of the separation date but accounting under family law can be quite loose. You have a lot of latitude to negotiate. Find something that works. Don't sweat the accounting details.
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