Lois Kulinsky & Associates, Ltd.
Contact Us Today For a Free Consultation
847-459-4448
View Our Practice Areas

How are stock options handled in a divorce?

Stock options are treated in the same way as any other asset in an Illinois divorce case. They will be divided up as the court decides. However, it can be easy to forget about this type of property or to overlook them. It is important to ask about whether your spouse has them and to do a check of investments for yourself, both because it is easy to overlook them and because they’re easy to hide. If you do not know about them, they will not be included in the division of your assets.

According to Forbes, another thing to keep in mind is that some stock options cannot be transferred. Therefore, if you want a part of your spouse’s stocks, they may have to be sold, which leads to a more complex situation because he or she will then be taxed on the profits. Taxes can then drag down the stocks’ values.

Speaking of valuing the stocks, you may need to do some research and get some help to figure it out. Determining how much an investment is worth is not always easy to do because the value can change quickly, and as mentioned, if they must be sold to divide them up, the worth can be reduced by taxes. In some cases, a stock may be worthless if its current trading value is too low. Keep in mind, though, that the trading value often changes, so it could be worth it to get a share of the stock options and sell them in the future if the value goes up. 

No Comments

Leave a comment
Comment Information
  • The Chicago Bar Association
  • Lake County Bar Association | 1912
  • 10 Best | 2015 - 2019 | Attorney Client Satisfaction | American Institute of Family Law Attorneys
  • Illinois State Bar Association
  • DBR | Chamber of Commerce | Deerfield | Bannockburn | Riverwoods

Tell Us About Your Experience

Review Us
Email Our Attorneys

Contact The Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Wheeling Office
395 East Dundee Road, Suite 200
Wheeling, IL 60090

Phone: 847-459-4448
Fax: 847-459-8548
Map & Directions

Libertyville Office
611 S. Milwaukee Avenue, Suite 4
Libertyville, IL 60048

Phone: 847-281-0200
Map & Directions

Buffalo Grove Office
355 W Dundee Rd
Suite 100
Buffalo Grove, IL 60089

Phone: 847-459-4448
Map & Directions