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Stock Options: An Overlooked Asset in Massachusetts Divorce

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Be careful and be thorough in reviewing any stock options before settling any divorce action in Massachusetts.

In Massachusetts, any asset acquired during the marriage, whether it's vested or non-vested, is a potential marital asset.

Oftentimes, companies issue stock options that vest over a period of time. At first glance, it may appear that they have no value or very little value. Even though they are not vested, courts in Massachusetts have the authority to enter orders giving a percentage of those non-vested benefits to the spouse when they do vest.

For example, if a stock option gives the employee the right to purchase a stock at $10 and the stock is trading at $9, it appears to have no value. However, if the stock option is valid for the next five years, and the stock goes up to $20 a share within that time period, then certainly those options do have value. Any settlement agreement or court order needs to address those types of vested and non-vested stock options.

Should you be in the midst of a divorce or contemplating divorce, contact the Law Offices of Renee Lazar either through email or telephone 978-844-4095 to schedule a FREE one hour no obligation consultation.

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Law Offices of Renee Lazar
4308 Thompson Farm
Bedford, MA 01730
Phone: 978-844-4095
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