Division Of Stock Options And Retirement Assets In Divorce
What stock options and retirement assets have in common is this: They are typically not tangible possessions of a person or a couple at the time of a divorce, but they represent real value in a marital estate. While an employee of a corporation with stock options may or may not exercise those options, there are countless legal precedents for including them in settlement negotiations for a divorce involving a complex asset portfolio.
How Do You Divide Stock Options In Texas?
Section 3.007 of the Texas family law code stipulates factors and procedures associated with the division of the value of stock options in a divorce. For example, the law spells out formulas for dividing stock options that were “granted to [a] spouse before marriage but required continued employment during the marriage” as well as stock options that were “granted…during the marriage but required continued employment following the date of dissolution of the marriage.”
The Parent Law Firm can advocate assertively on your behalf in complex property division matters such as division of value associated with stock options. Understand what is at stake and be prepared to make informed decisions in settlement negotiations or mediation. Attorney Dave Parent and the other lawyers of the firm can translate into plain English the risks and opportunities associated with the division of stocks, stock options, and retirement assets in a Texas divorce.
What Do I Need To Know About Retirement Assets Before Entering Into Divorce Mediation?
The actual value of retirement assets may depend on factors such as:
- Whether a pension is vested or unvested
- What a working person has contributed to 401(k) savings during a marriage and what that portion of an account is likely to be worth during retirement years
- Whether an executive or other professional is in line to receive deferred compensation upon retirement or termination
- Structure and projected timeframe of profit-sharing plans
- The impact of retirement assets on tax liability, including penalties for early withdrawal
In many cases, both spouses are interested in preserving the value of assets such as retirement accounts. Experienced family law attorneys at The Parent Law Firm, are well-equipped to advocate vigorously on your behalf to ensure that your share of divided retirement assets is fair. We will recommend and seek asset division agreements that work in your favor.
Understand Pros And Cons Of Dividing Retirement Assets | Contact Us
There may be beneficial and less-than-beneficial methods of dividing retirement accounts. It is important to consider tax implications and the totality of property division in order to evaluate the best ways to manage and account for retirement assets.