For people who are used to depending on a spouse for financial security, getting a divorce may be a shocking experience. These individuals might be anxious about how property division will be handled, or they may worry about the financial assets they may end up losing at a time when they also are getting used to the idea of financially supporting themselves independently. Stock options are one of the assets that are worth paying extra attention to during a divorce proceeding in Virginia.
Stock options often are overlooked during a divorce proceeding. However, they can be worth hundreds of thousands of dollars. Thus, it is wise for spouses to strive to reach an agreement on how stock options will be treated during a divorce proceeding.
In many cases, stock options can be treated as a marital asset that is split during a divorce. However, stock options may transform into income at a later date as well, based on how they are exercised at a company, and thus could be subject to taxation. It is best for a divorcing couple to negotiate how to treat stock options at the time of the divorce in order to avoid potential future litigation.
Knowing what to expect with regard to stock options and other martial assets, as well as property division, can be immensely helpful during a divorce proceeding. Getting divorced indeed is a complex process. Nevertheless, staying abreast of divorce laws and striving to reach an agreement with a spouse on essential financial matters may help to ensure the most fair and favorable outcome possible in Virginia.
Source: fa-mag.com, Weighing Divorce 'Options', Marc D. Bello, Jan. 7, 2014