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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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Old 02-11-2020, 04:07 PM
havequestions havequestions is offline
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Default RSU (Restricted Stock Units)

Does anybody have any experience on how this works during separation? Hitech company gives me stock that vests over a few years if I am still employed with them. Ie will give me 300 stock over 3 years, 100 per year if Iím still employed. How is this normally split up?

Itís a bit complicated because the income I earn from this is treated as employment income on my T4.

Thanks
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Old 02-11-2020, 08:06 PM
Kinso Kinso is offline
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What does your lawyer say?
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Old 02-11-2020, 08:10 PM
havequestions havequestions is offline
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Didnít talk to a lawyer, weíve been trying to settle it amicably via a mediator who recommended to just treat it as salary. But this has different implications on support payment vs just sharing the RSUs 50/50, which might bring down my salary.
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Old 02-11-2020, 08:11 PM
rockscan rockscan is offline
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If its part of your income then its income for support purposes. If its a long term investment you are trying to equalize then you have to approach it like a pension valuation.
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Old 02-12-2020, 02:56 PM
Kinso Kinso is offline
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RSUs are generally treated as income in the year they end up on your ITR. But the wording of your employment contract will influence this. If the values are significant you might want to get some limited scope legal advice by someone who's actually read your contract, not randos on the internet.

If we're talking about a few dollars, save your money.
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Old 02-21-2020, 01:10 PM
Abba435 Abba435 is offline
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Quote:
Originally Posted by havequestions View Post
Does anybody have any experience on how this works during separation? Hitech company gives me stock that vests over a few years if I am still employed with them. Ie will give me 300 stock over 3 years, 100 per year if Iím still employed. How is this normally split up?

Itís a bit complicated because the income I earn from this is treated as employment income on my T4.

Thanks
Stock options are family property as of the date of separation
Valuing them is tricky and costly.
There is case law on this.
I know someone who had loads of Nortel options on separation date and then the stock tanked making them worthless. She had to pay her ex 50% of the value of the options on separation date regardless. It bankrupted her.
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Old 02-21-2020, 02:42 PM
HammerDad HammerDad is offline
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If they have not vested, they are not family property.

If they have vested, they are family property and would included in equalization.

You don't include property that doesn't exist. Just because you are entitled to something down the road, doesn't mean that you will still be around come time when the option vests.
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Old 02-21-2020, 02:45 PM
Abba435 Abba435 is offline
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Originally Posted by HammerDad View Post
If they have not vested, they are not family property.

If they have vested, they are family property and would included in equalization.

You don't include property that doesn't exist. Just because you are entitled to something down the road, doesn't mean that you will still be around come time when the option vests.
I missed the not vested part.
HammerDad is correct.
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