If you’re involved in a divorce in Florida involving specialized assets, splitting them can be trickier than usual. Understanding how each one works is essential to ensure that you receive a fair value. Considering tax consequences and understanding how specific assets are valued is vital to safeguard against forfeiting more than your fair share.
Considering tax consequences is crucial
Looking at the financial impact you receive from future tax bills is vital when you are getting divorced with several specialized assets. For example, if stock options are involved, it’s essential to know that they can be taxed as high as 40%, which would take a considerable amount of money out of your holdings if you exercise them after a divorce has settled.
Understanding how stock options work
Are stock options part of the assets involved in your divorce? These are often used as a way to incentivize a high-ranking employee, such as a CEO, of a business to perform well in their job. Doing so can increase the value of the company’s stock, which would also increase the amount the stock options or worth. When exercising the options, the holder is able to use the grant price, which could be considerably lower than the current price, presenting a nice profit. Having a solid grasp of how this process works is essential when you are using it as a way to value your holdings during a divorce.
Vesting schedules and restricted stock awards
Stock options and restricted stock awards have vesting periods. Specific rules must be met before exercising them. Knowing how these vesting schedules work is crucial if you want to ensure that you are receiving a fair value during your divorce settlement.
Evaluating every asset involved in your divorce can be critical to your best interests. You’ll want to receive a fair value for all of the financial holdings you and your partner possess.