What to do with Stock Options in a Divorce with Kenneth Naes | Episode 111

Divorce at Altitude Podcast

Stock options become an issue in a divorce when they aren’t evaluated properly. Today we are joined by Kenneth Naes, financial advisor and stock option expert, to discuss stock options and how they affect a divorce. Tuning in, you will hear all about stock options and why they become a problem during a divorce. We delve into determining what the stock value is and whether it is marital or separate before discussing the importance of vesting as well as the difference between vesting and unvesting. 

Ken discusses the two main issues with stock options (risk and tax) and talks us through the time rule. We then go into complications that may affect Ken’s work and why providing the correct documentation is so imperative. Finally, we look into why the easy way out of dividing stock options at the time of divorce may make things more difficult in the long run. Do you want to find out what exactly stock options are and how to handle them in a divorce? Tune in to the Divorce at Altitude podcast to hear all this and much more!

Key Points From This Episode:

  • What stock options are and why they are an issue during a divorce. 
  • The process of determining if the stock value is property or not, marital or separate, and then what the value is.
  • The importance of the vesting (to give a right to an asset) time frame. 
  • Why companies want to become private and use strike price (a set price an asset can be bought or sold at any time.)
  • Vesting versus unvesting (an asset you do not fully own yet) and some evaluation and tax issues for stock options.
  • Who sets the guidelines for the particularities and performance goals of the stock price. 
  • What is required for the valuations and how it’s determined for private companies. 
  • Why an employment contract is a good starting point. 
  • Stock option scenarios and what Ken thinks the issues with them are; namely risk and taxes. 
  • How and why stock options are taxed and how they are paid for.
  • The importance of providing the correct documentation. 
  • Why dividing stock options at the time of the divorce may not actually make things easier. 

What is Divorce at Altitude? 

Ryan Kalamaya and Amy Goscha provide tips and recommendations on issues related to divorce, separation, and co-parenting in Colorado. Ryan and Amy are the founding partners of an innovative and ambitious law firm, Kalamaya | Goscha, that pushes the boundaries to discover new frontiers in family law, personal injury, and criminal defense in Colorado. 

To subscribe to Divorce at Altitude, click here and select your favorite podcast player. To subscribe to Kalamaya | Goscha’s YouTube channel where many of the episodes will be posted as videos, click here. If you have additional questions or would like to speak to one of our attorneys, give us a call at 970-429-5784 or email us at info@kalamaya.law.

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DISCLAIMER: THE COMMENTARY AND OPINIONS ON THIS PODCAST IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE. CONTACT AN ATTORNEY IN YOUR STATE OR AREA TO OBTAIN LEGAL ADVICE ON ANY OF THESE ISSUES.

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