Complex Employment Benefits in Connecticut Divorces: Stock Options, Restricted Stock, and Severance

Relocation Attorney Meghan FreedYou may be wondering how complex employment benefits like stock options, restricted stock, and severance are handled in Connecticut divorces.  Many people receive benefits beyond their salary, paid time off, and medical benefits.  Defined contribution benefits like 401(k)s or defined benefit plans like pensions through their employers are quite common, especially with people who work at large companies and government.  More and more often, we are also seeing even more complex benefits.

Complex Employment Benefits in Connecticut Divorces

Complex benefits packages that are being increasingly common for Freed Marcroft’s Connecticut divorce clients include:

Can Complex Benefits Like Stock Options Be Divided by a Connecticut Divorce Court?

Many people are under the misconception that these types of benefits cannot or will not be divided by Connecticut courts.  Connecticut is an “equitable distribution” and an “all property” state.  “Equitable” does not mean equal, or even half, but rather what the Superior Court considers fair.  “All property” means that the courts have jurisdiction over all the property that both spouses have, marital and separate.  Please click here if you would like some more background on how property is divided in Connecticut divorces.

Just because these types of assets can be divided doesn’t mean that it’s easy to divide them.  Uncovering and determining the best way to handle these assets is complicated.  Many are future benefits, making them complicated to value.  In addition, some have significant tax implications including restrictions and possible penalties.

Next Steps

Now that you have more information about the complex types of employer benefits that can be divided in Connecticut, you know that it isn’t simple.  Considering the level of discretion courts have when dividing marital assets, it is vital to have experienced legal counsel on your side. There is a lot of opportunity for creative negotiations, strategy, and solutions.

Our first step at Freed Marcroft, the Goals & Planning Conference, is designed to get to the heart of your problem and unveil your true goals.  Then, we take those goals along with the facts of your case and analyze them so that we can present you with recommendations and options on how to move forward.

Schedule your Goals & Planning Conference today, or contact us either here or by phone at 860-560-8160.

Written by Meghan Freed