Скачать или смотреть Stock Options in Connecticut Divorce: What You Need to Know About Division

Wondering what happens to your stock options during a Connecticut divorce? This video breaks down everything you need to know about how courts handle this increasingly common asset in divorce proceedings.

Connecticut is an equitable distribution state, meaning assets are divided fairly based on your specific circumstances rather than automatically split 50/50. Under C.G.S. Section 46b-81, both vested and unvested stock options can be considered marital property subject to division, even if they depend on your future employment.

Courts typically use what is called a time-rule or coverture fraction to determine the marital share of your stock options. The formula calculates the ratio of time from the grant date to divorce versus the time from grant to vesting. For example, if you were granted 1,000 shares vesting over 4 years and divorce occurs at year 3, approximately 750 shares or 75 percent would be considered marital property.

There are two primary methods for dividing stock options: immediate offset, where one spouse buys out the other with different assets, or deferred distribution, where the options are split when actually exercised. Valuation often involves complex factors like those in the Black-Scholes Model, including current stock price, strike price, and historical volatility.

Full financial disclosure is legally required under Connecticut Practice Book Sections 25-30 and 25-32, including all stock option grants, vesting schedules, and plan documents.

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