Dividing property during divorce often involves more than just houses and bank accounts. If you or your spouse received stock options, those assets can significantly impact the financial outcome. You need to understand how New Hampshire courts treat them and what factors influence their division.
Recognize how stock options function
Stock options give you the right to purchase company shares at a predetermined price in the future. Employers often include them as part of compensation packages, particularly in high-level or long-term roles. Some options vest immediately, while others follow a schedule tied to performance or continued employment. That distinction plays a key role in divorce proceedings.
Understand New Hampshire’s approach
New Hampshire courts frequently consider stock options part of the marital estate if earned during the marriage. That includes both vested and unvested options. Judges evaluate when the company granted the options and whether they compensated prior work or aimed to incentivize future contributions. If the options rewarded efforts made during the marriage, the court will likely divide them equitably.
Analyze the factors courts examine
Courts consider several variables when dividing stock options. They assess the timing and purpose of the grant, the vesting schedule, and the option’s current or projected value. You must provide documentation that clarifies the details. If the value isn’t immediately clear, financial experts may provide appraisals or projections to help the court make a fair assessment.
You should prepare for a thorough review of any stock options. Courts won’t overlook them simply because they’re complex. If either spouse earned options during the marriage, the court may divide them. Clear records showing when the company granted the options and their purpose will support a fair outcome.
