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Understanding 2 types of stock assets

Fully understanding assets is, of course, a critical part of a divorce. You do not want to rely on your spouse for this information, and you do not want to overlook anything. You must know what assets your control, what you have a right to in the divorce, and what steps to take.

This is often simple for things like cash assets or a family home. You know the value of your bank account. You can bring in a home appraiser to find out what the house is worth. These are things on everyone's list during a divorce. It can get a bit harder with investments and stocks, though.

For instance, maybe your spouse was given restricted stock as part of their compensation package at work. This means that they did not have to pay for the stock, despite its value. However, the stock came with specific conditions. Your spouse cannot actually transfer them until meeting those conditions. Most often, this means staying with the company for a certain amount of time.

Instead of restricted stock, maybe your spouse has stock options. These are different because they are simply the right to purchase some of the stock in that company in the future, though the price is set now. For instance, maybe they told your spouse he or she could buy shares for $50 each. They are now worth $200 each on the market. Your spouse can purchase them and sell them for an instant profit of $150 a share.

Hopefully, this helps you understand a bit more about your assets and what you need to do to get what you deserve in the divorce.

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