In high-net-worth divorces, few assets are as misunderstood or as complex as stock options and restricted stock units (RSUs). Unlike traditional compensation like salaries or bonuses, stock-based compensation is often contingent on performance, tied to future vesting dates, or subject to company-specific restrictions. In some cases, the asset doesn’t even exist yet in a tangible form at the time of divorce—but that doesn’t mean it doesn’t matter.
When one spouse is a corporate executive, tech entrepreneur, or key employee of a publicly traded company, these stock-based assets can make up a significant portion of the marital estate. And yet, many spouses do not realize they have a claim to those assets—or don’t understand how to value or divide them equitably.
As a Tampa high net worth divorce lawyer, I work with clients who hold stock options, RSUs, and other forms of executive compensation, as well as with spouses of those employees who want to ensure they receive their fair share. This post breaks down how Florida law treats these complex assets, how they’re valued and divided, and what every high-asset client should know before negotiating or litigating their divorce.
What Are Stock Options and RSUs?
Before diving into division, let’s define what we’re dealing with.
Stock Options: These give an employee the right to purchase company stock at a fixed price (the “exercise price”) at a future date. If the stock price rises, the employee can profit by buying low and selling high. Options are typically subject to a vesting schedule.
There are two types of stock options:
- Incentive Stock Options (ISOs) – Favorable tax treatment, but strict rules on transferability.
- Non-Qualified Stock Options (NSOs) – More common in divorce because they’re more flexible, though taxable upon exercise.
Restricted Stock Units (RSUs): These are company shares granted to an employee, subject to vesting requirements. Once vested, they convert into actual stock that can be sold or held. RSUs are typically taxed as ordinary income when they vest.
Both types of equity compensation may be granted:
- As a reward for past performance
- As an incentive to remain at the company (retention)
- In anticipation of future success
These nuances are what make stock-based compensation so tricky in divorce. Determining whether they’re marital assets—and how to divide them—requires analysis, not assumptions.
Florida Law and Equitable Distribution
Florida is an equitable distribution state, which means marital property is divided fairly (though not always equally) between spouses during divorce. This includes assets acquired during the marriage, whether in cash, real estate, retirement accounts, or stock-based compensation.
However, determining whether stock options or RSUs are marital or non-marital depends on several factors:
- When they were granted
- Why they were granted (past vs. future services)
- When they vest
- Whether they were granted in exchange for marital labor
- Whether the asset was acquired using marital resources
As a Tampa high net worth divorce lawyer, I often see disputes arise around options or RSUs that are awarded during the marriage but won’t vest until after divorce. Are they marital or not?
The answer often lies in intent. If the grant is a reward for past performance (during the marriage), it’s likely marital. If it’s to incentivize future performance (post-divorce), it may be non-marital—or partly non-marital.
How Florida Courts Handle Stock Options and RSUs
Florida courts analyze stock options and RSUs on a case-by-case basis. There is no bright-line rule. However, courts often use a time-based coverture formula to determine the marital portion.
Here’s how it works:
Marital Portion = (Number of months between grant and date of divorce) / (Number of months between grant and full vesting)
For example, if an executive is granted 10,000 RSUs during the marriage, and 50% vest before the date of filing and 50% vest after, the court might determine only the vested shares—and a proportional portion of the unvested ones—are marital.
Courts may also look at:
- The purpose of the grant
- The language in the stock grant agreement
- Whether similar grants have been made in the past
- Patterns in compensation structure
- Tax filings and W-2 forms
Your Tampa high net worth divorce lawyer must carefully review all grant documents, employment contracts, and corporate compensation plans to present the strongest argument for including—or excluding—certain shares from the marital estate.
Valuation of Stock Options and RSUs
Once the marital portion is identified, the next step is valuation. This is not always straightforward.
RSUs are easier to value because they represent actual shares of stock, granted at no cost to the employee. Their value is simply:
Number of RSUs × Current Market Price of Stock
But stock options are trickier. They may be:
- In the money: The current stock price is higher than the exercise price.
- Out of the money: The current stock price is lower than the exercise price (the option is worthless unless the stock rebounds).
Valuing options involves one or more of the following:
- Intrinsic Value: Market price minus exercise price.
- Black-Scholes Model: A more complex valuation tool accounting for volatility, time to expiration, and risk-free rates.
- Binomial Models or Monte Carlo simulations for private companies or long-dated options.
An experienced forensic accountant or financial expert may be required. As your Tampa high net worth divorce lawyer, I coordinate with valuation experts who understand the tax and financial implications of these complex compensation plans.
How These Assets Are Divided
Once the marital portion and valuation are established, options and RSUs can be divided several ways:
1. In-Kind Division
Each spouse receives a portion of the actual options or RSUs. This may require the employer’s cooperation and can be complicated if the plan doesn’t allow transfers.
Pros:
- Each party shares in future gains or losses.
- Tax burden falls on the recipient upon vesting or exercise.
Cons:
- Requires ongoing cooperation.
- Some companies prohibit transfers to ex-spouses.
2. Deferred Distribution (If and When Received)
The titled spouse retains the asset and agrees to transfer a percentage of the asset to the other spouse as it vests.
Pros:
- Avoids premature valuation.
- More practical for unvested shares.
Cons:
- Ongoing involvement and potential for non-compliance.
3. Offsetting Assets
The titled spouse keeps all stock options/RSUs, and the other spouse receives equivalent value through other marital assets (e.g., cash, real estate, retirement accounts).
Pros:
- Clean break with no future entanglement.
Cons:
- Accurate valuation is critical.
- Market changes may benefit or harm one party disproportionately.
As a Tampa high net worth divorce lawyer, I assess your goals and structure the settlement method that best fits your needs—whether it’s preserving control, avoiding ongoing obligations, or maximizing future upside.
Tax Implications of Dividing Stock Options and RSUs
Stock-based compensation carries significant tax implications. Each type of asset is taxed differently, depending on when it vests and how it’s exercised.
- RSUs: Taxed as ordinary income when they vest. The recipient receives shares or the cash value minus withholding.
- NSOs: Taxed at exercise. The spread (market price minus exercise price) is considered ordinary income.
- ISOs: Tax advantages possible, but loss of favorable treatment can occur if transferred in divorce.
Dividing these assets without proper tax planning can lead to unintended liability. The IRS may tax the titled spouse on shares or options even if a portion was transferred to the other party unless done correctly.
To protect your tax position, your Tampa high net worth divorce lawyer will:
- Draft detailed settlement language specifying allocation, responsibility, and timing.
- Involve a tax advisor or CPA to structure payments or transfers.
- Include hold-harmless and indemnity clauses to minimize post-divorce disputes.
Special Considerations for Private Company Stock
Executives or employees of private companies often receive options or RSUs that are illiquid, restricted, or subject to buy-back clauses.
Unique challenges include:
- No clear market value
- Transfer restrictions
- Dilution risk
- Uncertainty about IPO or sale
Dividing private equity compensation may involve:
- Discounted present value analysis
- Risk adjustment for liquidity or market uncertainty
- Delayed distribution with conditional clauses
- Ongoing disclosure obligations
As a Tampa high net worth divorce lawyer, I work with startup founders, physicians in practice groups, and corporate insiders to structure divorce settlements that account for private company compensation while preserving confidentiality and long-term ownership.
When One Spouse Doesn’t Understand the Compensation Plan
One of the biggest challenges in stock-based divorces is the knowledge gap. The employee spouse often has detailed understanding of the compensation package, while the other spouse is in the dark.
This imbalance can be used—intentionally or not—to:
- Minimize perceived value
- Delay disclosure
- Hide assets through rollovers or new grants
- Understate taxable income
As a Tampa high net worth divorce lawyer, I level the playing field by:
- Demanding full and clear disclosure of all equity awards
- Obtaining all plan documents, grant agreements, and vesting schedules
- Working with forensic accountants to analyze true income and growth
- Subpoenaing employer documentation if necessary
Preventing Post-Divorce Disputes
Because options and RSUs often involve future vesting, it’s essential to craft a settlement agreement that anticipates every possible contingency.
Your divorce settlement should:
- Include specific award names and grant dates
- Outline the division method and percentage
- Specify how taxes and withholdings will be handled
- State what happens if the titled spouse leaves the company
- Require disclosure of future awards granted prior to final judgment
- Include enforcement mechanisms and indemnity clauses
A Tampa high net worth divorce lawyer ensures your agreement is future-proof and enforceable—even if circumstances change post-divorce.
Planning Ahead With Prenuptial or Postnuptial Agreements
If you have significant stock compensation—or expect to in the future—you should consider using a prenuptial or postnuptial agreement to protect these assets in the event of divorce.
These agreements can:
- Define stock options and RSUs as separate property
- Specify treatment of future appreciation
- Exclude future grants from division
- Protect liquidity events from post-divorce claims
Florida courts uphold these agreements when they are entered into voluntarily, with full financial disclosure and fair terms. As a Tampa high net worth divorce lawyer, I routinely draft and enforce marital agreements designed to protect complex assets like equity compensation.
FAQ: Stock Options and RSUs in Florida Divorce
Are stock options considered marital property in Florida?
If granted during the marriage and tied to marital effort, yes. Options granted before or after the marriage may be partially excluded.
How are unvested RSUs handled in divorce?
Courts often apply a time-based formula to divide the portion earned during the marriage, even if they don’t vest until after divorce.
Do I have to give my spouse part of my private company stock?
You may not have to transfer ownership, but you may owe them a portion of the value. This can often be settled through a buyout or asset offset.
Can I hide stock compensation from my spouse?
No. Full financial disclosure is required. Failure to disclose can result in penalties, reversed settlements, and court sanctions.
Will stock options affect alimony or child support?
Yes. Any income generated from exercising options or receiving RSUs can be counted as income for support calculations.
How do we value options that are out of the money?
They may have little or no current value. However, courts may still assign speculative value or use expert testimony to forecast future worth.
Do stock options get split 50/50?
Not always. Equitable distribution means fair, not necessarily equal. The court will consider various factors in determining percentage allocations.
Can we divide stock options in a settlement instead of court?
Yes. Many couples agree to divide stock options and RSUs as part of a private settlement, which can then be approved by the court.
Can stock awards given after the divorce still be marital?
If awarded for work performed during the marriage, yes. If based solely on post-divorce performance, they may be considered non-marital.
When should I speak to a Tampa high net worth divorce lawyer about stock compensation?
As early as possible. Protecting your interests requires time, documentation, and strategy. The sooner you act, the better.
Stock options and RSUs may seem abstract—but in a Florida divorce, they can make or break your financial future. These assets require a deeper level of legal knowledge, financial acumen, and strategic planning than traditional compensation or property.
At The McKinney Law Group, we represent business owners, executives, and professionals with complex compensation structures. If you’re facing divorce and stock-based income is part of your financial picture, contact a Tampa high net worth divorce lawyer today.
We’ll help you trace, value, and divide these sophisticated assets with clarity and strength—so you can move forward with confidence and control.
The McKinney Law Group: Skilled Divorce Representation for Complex Marriages in Tampa
If your divorce involves multiple properties, shared businesses, or significant financial holdings, you need more than basic legal help—you need a law firm with experience. At The McKinney Law Group, we help Tampa clients navigate complex, high-asset divorces with confidence.
We specialize in:
✔ Business and professional practice valuations
✔ Dividing luxury assets, investment portfolios, and retirement plans
✔ Drafting and enforcing prenuptial and postnuptial agreements
✔ High-conflict custody and parenting disputes
✔ Confidential, strategic legal advocacy from start to finish
Complex divorces require a comprehensive approach—we’re here to deliver it.
Call 813-428-3400 or email [email protected] for your consultation.