Understanding Stock Options

  Posted on December 15, 2013

If in the midst of divorce and your marital estate includes stock options, it is important to understand the details. Stock options cannot typically be transferred to the other spouse. For example, if your spouse receives the stock options from their employer, they are assigned to that person and cannot be transferred to you. Your spouse will have to exercise the options, pay the taxes and the net proceeds can be transferred to you. This transfer will not have tax consequences if the transfer occurs within 12 months from the date of divorce. Regardless if you live in Nashville, Brentwood, another city in Tennessee or the US, if you understand the financial details, you'll get a better settlement.

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