Jenkins P.C. - High Net Worth Divorce

What Happens When Your Income Becomes Complicated?

In many high-income divorces, one or both spouses receive additional compensation benefits in the form of RSUs, ESPP stock disposition, stock option gains or patent awards. Attorney Erik Jenkins has experience dividing and handling these types of assets and income in divorces.

What Happens To RSUs In A Divorce?

Restricted stock units (RSUs) are a growing form of employment bonuses in California's larger companies. The RSUs themselves have no initial value but once vested, they can be worth a significant sum, sometimes up to more than half a year's salary or more.

The value and nature of RSUs can cause unique complications in divorces. Nevertheless, Jenkins P.C., is equipped to advocate for you and uphold your rights. One of our firm's core values is to strive for fair resolutions. We are committed to this value and to working for the outcome you deserve.

Dividing RSUs

RSUs acquired and vested during marriage are considered community property, so the value will be divided equally upon the legal separation between the employee and nonemployee spouse. However, California courts do not yet use an official formula to calculate equity division, which makes the already complicated process even more so. The fundamental variables of dividing RSUs are:

  • Start date of employment
  • The date the employer granted the RSU
  • The date the RSU was or will be vested
  • Date of separation from your spouse

Both formulas the courts use factor in these dates to determine how much the nonemployee spouse may be eligible to receive from vested RSUs. However, these dates are specific to each individual person and situation. The effect of varying circumstances on RSUs in a divorce requires a skilled approach from a lawyer to sort out.

Providing You With Knowledgeable Advocacy And Counsel

Attorney Erik Jenkins has comprehensive experience overcoming the challenges RSUs pose in a high-income divorce. We have worked with employees of big companies such as Qualcomm, Google, Intuit, Sony and Broadcom in the San Diego, La Jolla and North County areas. We are familiar with each corporation's unique payment methods, and we extensively research those methods before each case in which the client or their spouse is an employee.

Protecting our clients and reaching fair resolutions is our priority. Call 858-314-2400 for a consultation at our La Jolla office or schedule an appointment online.

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You deserve to feel secure about the team with which you are working. To find answers and advice on your divorce or post-divorce concerns, please fill out our online contact form or call 858-314-2400, and we will schedule an appointment with an attorney for you.

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1134 Kline St.
La Jolla, CA 92037

Phone: 858-314-2400
Fax: 858-724-1431
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