What is an RSU?

An RSU is a restricted stock unit. The only difference between RSU and restricted stock is that an RSU is an unfunded promise. This amounts to an entry on the books at the corporate level. The only distinction between traditional restricted stock and an RSU is that you cannot make a Section 83 b election – the election for the employee to opt out of the standard IRS treatment with an RSU. Instead, you are typically taxed when the substantial risk of forfeiture goes away. 

There two key questions when evaluating the value of an RSU (1) when the does the earning period begin and (2) when does the earning period end.

I don’t know what types of equity compensation my wife has at her start-up, what documents should I ask for in a divorce?

The document that you are looking for in order to determine what type of stock award your spouse has been given is called an Equity Compensation Plan Document. At the company level this is a document that applies to all employees. You will also want something called a Grant Notice, which describes the specific provisions of each grant given to the employee.

Last, you will want to ask for an Account Statement, which is a snap shot of where the employees accounts are today.

You can contact me at Amanda@gordonfamilylaw.com for more information.. 

What date is used to value my assets?

The Court is obligated to value assets as of the date of trial.  Family Code 2552. However, if there is good cause, the parties can request that the Court value the assets at a date following separation but prior to the trial.  Family Code 2250(b).

A good example of when this is appropriate is if you have small business or if there has been a significant period of time between the date of separation and the date of trial.

If you are concerned about the valuation of your assets, you should consider working with a family law attorney to determine what is the best valuation date. Contact me at amanda@gordonfamilylaw.com for more information. 

Debt durring marriage

Who owns the debt incurred during marriage?  Under Family Code §910, the community estate is normally liable for debts incurred by either spouse, either before or during marriage, regardless of whether one or both spouses are parties to the debt.

Can I do anything about this?  By signing this Premarital Agreement, both parties can agree that each debt incurred during marriage, including credit cards, charge accounts, and other loans or extensions of credit, will be the separate debt of the party who incurs it unless the parties acquire the debt in their joint names. 

If you are concerned about your spouse and their spending habits, or they simply like taking risky business ventures, consider using a prenup or a Marital Agreement to ensure that debt taken on during marriage stays with your spouse. 

You can contact me at Amanda@gordonfamilylaw.com for more information.

How are social security benefits handled in divorce?

Many Bay Area clients ask about their social security benefits in a divorce.  

In a California divorce, you are eligible to collect benefits based on your ex-spouses work record if (1) you have been married at least 10 years, (2) you have been divorced for at least 2 years, (3) you are at least 62 years old, and (4) you are currently unmarried.

The government provides an excellent resource here:

https://www.ssa.gov/planners/retire/divspouse.html

Contact me at amanda@gordonfamilylaw.com for more information.