For many executives and professionals, a significant portion of their net worth isn't in a simple bank account; it's tied up in complex compensation packages like stock options, Restricted Stock Units (RSUs), and other forms of deferred compensation. If this is your situation, you know that understanding these assets is confusing enough on its own. Trying to figure out how they are handled and how they can be divided in a divorce can feel completely overwhelming.

The most important thing to understand is this: the court’s goal is to determine what portion of these assets were *earned* during the marriage. That portion is likely considered marital property and is subject to division, even if the options haven’t been exercised or the stock units haven’t vested yet.

The key concept here is the "vesting schedule."

Think of it like this: Your company grants you these assets, but you don't own them outright immediately. You earn them over a period of time, which is called vesting. The portion of the grant that vests *during your marriage* is generally what's on the table in a divorce.

Here’s a simplified example:

• In 2022, your company grants you 1,000 RSUs that will vest in four equal parts over four years (250 units per year).

• You file for divorce in 2024, exactly two years into the grant.

In this scenario, the 500 units that vested in 2023 and 2024 will likely be deemed *earned during* the marriage and would be considered marital property. The remaining 500 units that will vest after the divorce are likely be considered your separate property.

Of course, every grant agreement is different, and the specific calculations can be complex. The legal process involves analyzing the grant documents, understanding the vesting schedule, and applying the correct legal formulas to ensure a fair and accurate division. This is a highly focused area of family law where having an experienced guide is critical to protecting your financial future. 

Understanding the basics is the first step, but protecting your life's work requires a detailed strategy. To learn the 5 critical mistakes business owners make during a divorce and how to avoid them, download our free guide: **The Executive's Playbook: How to Protect Your Business and Your Wealth in an Ohio Divorce.**