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In a divorce or separation, how are unvested stock options handled?

Asked over 2 years ago - Bainbridge Island, WA

I live in the state of Washington and am partially compensated with regular stock grants (RSUs). These grants vest every 6 months, with the next vesting on Nov 15. My wife has asked to be separated and I'm wondering how these upcoming stock grants are calculated into spousal maintenance. The request for separation came to me just this week and I am still in the house.

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Attorney answers (1)

Michael William Bugni

Reputation Level 9

Answered over 2 years ago. Family Law Attorney in Seattle, WA.

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Stock awards which vest in the future are designed to keep you at the company and reward your future efforts. After the separation date, your labor (and wages) are your separate (not community) property. The unvested options (with one exception) are therefore your separate property. The exception has to do with the shares that vest on November 15. Those are community (prorated from the grant date to the separation date).

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