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I have a question regarding the division of stock options…

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I have a question...

I have a question regarding the division of stock options and share grants

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Texas

Lawyer's Assistant: Has anything been filed or reported?

Yes....

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This is my second marriage where we were married Sept 2013. My question is would she be entitled to any proceeds from stock awarded prior to 2013 but vesting after 2013? I also have an exwife prior to 2013 that was entitled to a share of the proceeds for stock awarded prior to our divorce.

Submitted: 4 months ago.Category: Legal
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Answered in 15 minutes by:
12/4/2017
Lawyer: Ray, Lawyer replied 4 months ago
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 46,275
Experience: 30 years in civil, probate, real estate, elder law
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Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

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Lawyer: Ray, Lawyer replied 4 months ago

Stocks, while not the same as any property that you can actually hold in your hands, can still be divided up in a divorce. If a spouse came into the marriage with those stocks then the ownership should be continued as separate property.

If the stocks were purchased during the marriage and bear the names of both spouses on them then the parties will have to determine between themselves how they should be divided or a judge will have to step in.

there is no set rule that can be applied to the dividing up of stocks. Factors such as why the stock was purchased, the date the stock became fully vested and the actual purchase date itself will go a long way towards determining which party to a divorce winds up with the stock when the dust settles in their case.

The Texas Family Code in Section 3.007 goes through these sort of factors in much greater detail than I am able to in this relatively short blog post. If you are interested in learning how stock options are treated when the stock was granted to a party before they were married but required continued employment through the date the party married their spouse or how options are treated when they’re granted during a marriage but become fully vested at date after the divorce will have been finalized, take a look at the Code.

The bot***** *****ne is that the divorce court has final say whether these are community property.My hunch is that some not all of them are.The exp got a portion of these in prior divorce that tells me the court felt they were community proeprty so then it will depend when that one ended and the next one began.

Your lawyer is free to argue otherwise here or at least argue only part of them are community from marriage number two.The judge has to decide this based on the Family Code above, the rules are not black and white here I am afraid.Your lawyer hopefully can make some good arguments to save these for you.

It is really the one area in Texas that is gray and judge has wide discretion.Remember the presumptions is community property

I appreciate the chance to help you today.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Reference

https://austin.zdfamilylaw.com/division-of-assets-for-individuals/stock-accounts/

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