Dividing assets in a divorce can be complicated, especially when they involve stock options. These assets often hold significant value and may not be easy to liquidate. Understanding how Ohio classifies and divides stock options can help you plan for a fair outcome.
Are stock options marital or separate property?
Stock options granted during a marriage usually count as marital property in Ohio. This means they require division, even if you cannot exercise them immediately. If stock options were granted before the marriage or after separation, they may count as separate property. However, if their value increased due to both spouses’ efforts, a portion could still require division.
How do courts value and divide stock options?
Valuing stock options presents challenges because their worth depends on market conditions and vesting schedules. Courts use different methods to determine their value, such as current market prices or future projections. Once valued, courts divide stock options in various ways. Some award a percentage of the options when they vest, while others offset their value with other marital assets.
Can courts divide stock options before they vest?
Yes, Ohio courts divide unvested stock options if granted during the marriage. A spouse may receive a share of the options once they vest, or the court may assign a monetary value and compensate with other assets. Courts consider factors such as the purpose of the stock options and whether they were for future compensation or past performance.
Planning for a fair division
If stock options form part of a divorce settlement, reviewing employment agreements and vesting schedules remains essential. Proper documentation ensures an equitable distribution. A clear strategy prevents disputes and ensures both parties receive a fair share of assets.
