How would vested stock option in startup be divided during divorce?

Business 5 views 3 answers
My wife works for a startup, she has some vested share of the startup. How would these be divided during divorce? she was saying that I am only entitled to half of the current value (less than 5K), but in the fact of high likelihood of the startup being acquired within the next 2-3 years with a significantly higher valuation than current value, getting half the share seems to be a more fair approach. Please let me what my options are here. thanks.

Attorney Answers

3
Adam A StudnickiPersonal Injury LawyerScottsdale, AZ ·
This is a divorce question, not venture capital. You can ask under the divorce topic and/or check with a local divorce lawyer. Be well.
0 upvotes
Mark Britton ·
There are a number of discussions regarding this issue in the forums: http://www.attorneyqna.com/legal-answers/how-stock-option-get-splited-in-case-of-a-divorce-688643.html http://www.attorneyqna.com/legal-guides/ugc/restricted-stock-units-rsu-s-in-california-divorce-cases Use the search box to look into other CA-specific discussions. You can also re-ask your question, selecting "divorce" or "family law" as the practice area. Mark CEO,
0 upvotes
Allison Dundas ·
Your wife is not correct that you are only entitled to 1/2 of the current value. You have an interest in all options awarded during marriage. You can keep them if you want. Contact the company directly to see how they divide the shares. Please also understand that you have an interest in any and all stock options (vested or not) awarded during marriage. Make sure you understand everything she is entitled to before you enter into a stipulated judgment. Hope that helps!
0 upvotes

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