North Carolina Divorce Lawyers Blog

Articles Tagged with stocks

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Ubertaccio v. Ubertaccio, 588 S.E.2d 905 (N.C. App. 2003) (Levinson, J. concurring)

 

In North Carolina, Equitable Distribution (ED) is one of the common mechanisms by which former spouses divide their personal and real property. Stock options and salary substitutions acquired by a party are typically subject to ED. However, not all stock options are genuine stock options on their face. Nor should all forms of deferred compensation be subject to ED. Below, we discuss a Judge that agreed with the outcome, but not on the rationale of classifying a “stock option” in ED. Continue reading →

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Stock options can be offered to employees as an incentive or reward for a job well done. They are typically offered up front as a future benefit after working at a company for a set amount of time and can be purchased at an option price that was previously set. Every company will have a different policy and set of requirements. Some require vesting. In North Carolina, in most circumstances, the court will consider a stock option as a form of deferred compensation. The label is important because it opens up the possibility of stock options to equitable distribution. If they are acquired or received during the course of marriage and before separation, they are very likely marital property, even if the option cannot be exercised until after a judgment of divorce. Likewise, they can be divisible if acquired as a result of employment during the marriage, but not received until after separation. Continue reading →