Stacy Francis & Davon Barrett Featured by Kiplinger on What to Watch Out for in a High Asset Divorce
By: Francis Financial
February 22, 2021
Stacy Francis, President and CEO of Francis Financial, was recently featured by personal finance advice publisher Kiplinger. Francis’ article focuses on how to identify and distribute executive compensation during a high net worth divorce and includes the expert advice of Francis Financial’s Certified Financial Divorce Analyst Davon Barrett.
Francis points out that stock options and restricted stock awards and units are being offered now more than ever before as companies find increasingly creative ways to compensate top employees through the pandemic. Knowing what types of executive compensation your spouse receives is key to an equitable divorce process.
Francis goes on to explain what stock options and restricted stock awards are and how vesting periods may influence taxes, saying “The different types of vesting schedules can affect what you can claim as marital property and are subject to division in your settlement agreements.”
Because “most employers do not allow stock options or restricted stock to be transferred to another person”, matrimonial attorney Lisa Zeiderman suggests “ the employee spouse must hold the stock options or restricted stock in a constructive trust to benefit the non-employee spouse” and is responsible for paying the taxes when due.
Francis Financial’s Barrett contributes how to track down incentive compensation plan documents and suggests working with a “team of financial and legal professionals (to) help you find these assets, determine the value, and make sure you get your fair share.”