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Understanding how divorce affects your stock options and RSUs
Applies to:
Unvested RSUs are typically forfeited. Vested RSUs are yours to keep.
You usually have 90 days to exercise after leaving. ISOs may convert to NSOs.
You usually have 90 days to exercise vested options after leaving.
Unvested shares may be subject to company repurchase rights.
Contributions may be refunded. Check your enrollment period status.
Stock options and RSUs are often among the most complex assets to divide in a divorce. Understanding the key issues helps protect your interests.
Vested equity: Generally considered marital property if acquired during marriage.
Unvested equity: Treatment varies by state - may be partially marital property based on when granted vs. when it vests.
Unexercised options present unique challenges:
Common approaches:
Generally simpler than options since there's no exercise decision:
Going through a major life change? Get personalized help with your equity.
After an IPO, most employees face a lockup period preventing them from selling shares. Learn what happens when the lockup expires and how to plan for this important event.
RetirementRetirement triggers important decisions about your stock options and equity compensation. Learn about extended exercise windows, tax planning, and how retirement differs from regular departure.
LayoffBeing laid off creates urgent decisions about your equity compensation. Learn about accelerated vesting, exercise windows, and financial considerations when your employment ends involuntarily.
This content is for educational purposes only and does not constitute financial advice. The information provided is general in nature and may not appl...
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