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Divorce and Awards of Stock Options and Restricted Stock to Employees

During your divorce, it is important to understand the ins and outs of employment compensation packages — both your own and your spouse’s. Besides wages, employee compensation may include cash bonuses, stock options, restricted stock and restricted stock units. Such awards may be used to reward past performance or to incentivize the employee in the future. These assets will be divided during the divorce; therefore, the marital portion must be determined and the tax effects must be analyzed. This article explains what steps can be taken to uncover any such compensation that an employee’s spouse is receiving.