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Need Some Advice on Stock Options

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bry_shark

Junior Member
A legal question for you…

I was issued options at my start date in 2000, and additional options at several junctures since then. I was not married when I recieved my first option grant, but did get married Feb 2005.
I am still happily married, but I am interested in ensuring my options and future options are carved out for me, should the marriage ever dissolve for any reason. The last 2 or 3 options issuances have occurred since my marriage. I would like to know what alternatives are available to me and my company for the recording/issuing of the options. No new options agreements have been handed to me since my start date, but there are written and verbal communications noted to the employee files at each review or promotion, delineating any options increases.
I would like to, for example, transfer these options to a trust established by my folks, as one alternative. Your recommendation on a specific mechanism to move or surrender/reissue these latest options awards would be most appreciated.
Also can any future grants be granted to the trust instead of an individual? I need the best possible solutions and do not want to directly involve my spouse.

Bry_shark
 


Zigner

Senior Member, Non-Attorney
US Law Only!

A legal question for you…

I was issued options at my start date in 2000, and additional options at several junctures since then. I was not married when I recieved my first option grant, but did get married Feb 2005.
I am still happily married, but I am interested in ensuring my options and future options are carved out for me, should the marriage ever dissolve for any reason. The last 2 or 3 options issuances have occurred since my marriage. I would like to know what alternatives are available to me and my company for the recording/issuing of the options. No new options agreements have been handed to me since my start date, but there are written and verbal communications noted to the employee files at each review or promotion, delineating any options increases.
I would like to, for example, transfer these options to a trust established by my folks, as one alternative. Your recommendation on a specific mechanism to move or surrender/reissue these latest options awards would be most appreciated.
Also can any future grants be granted to the trust instead of an individual? I need the best possible solutions and do not want to directly involve my spouse.

Bry_shark
 

LdiJ

Senior Member
A legal question for you…

I was issued options at my start date in 2000, and additional options at several junctures since then. I was not married when I recieved my first option grant, but did get married Feb 2005.
I am still happily married, but I am interested in ensuring my options and future options are carved out for me, should the marriage ever dissolve for any reason. The last 2 or 3 options issuances have occurred since my marriage. I would like to know what alternatives are available to me and my company for the recording/issuing of the options. No new options agreements have been handed to me since my start date, but there are written and verbal communications noted to the employee files at each review or promotion, delineating any options increases.
I would like to, for example, transfer these options to a trust established by my folks, as one alternative. Your recommendation on a specific mechanism to move or surrender/reissue these latest options awards would be most appreciated.
Also can any future grants be granted to the trust instead of an individual? I need the best possible solutions and do not want to directly involve my spouse.

Bry_shark
Your plan won't work. The profit from stock options are taxable wages when exercised, therefore your company cannot issue them to anyone but you. They cannot be moved into a trust or transferred to someone else. Therefore, there is no way to protect any options that have been issued during your marriage.
 

Zigner

Senior Member, Non-Attorney
Your plan won't work. The profit from stock options are taxable wages when exercised, therefore your company cannot issue them to anyone but you. They cannot be moved into a trust or transferred to someone else. Therefore, there is no way to protect any options that have been issued during your marriage.
ASSuming our OP is in the USA ;)
 

LdiJ

Senior Member
ASSuming our OP is in the USA ;)
Yes, assuming that. However, stock options to employees is mostly a US phenomena. In addition, it doesn't matter what state the OP is in, because the rules regulating stock options are federal rules.
 

mistoffolees

Senior Member
Your plan won't work. The profit from stock options are taxable wages when exercised, therefore your company cannot issue them to anyone but you. They cannot be moved into a trust or transferred to someone else. Therefore, there is no way to protect any options that have been issued during your marriage.
Well, it IS possible to have the stock options issued in the form of deferred compensation and paid at some future date, but that won't do any good because the wife will be entitled to half, anyway.
 

Ronin

Member
I am still happily married, but I am interested in ensuring my options and future options are carved out for me, should the marriage ever dissolve for any reason...
...I would like to, for example, transfer these options to a trust established by my folks, as one alternative.
I need the best possible solutions and do not want to directly involve my spouse.
Apparently this happily married person is seeking advice here on how to best commit fraud against their spouse by concealing and squirreling away equity accrued during the course of the marriage.
 

LdiJ

Senior Member
Apparently this happily married person is seeking advice here on how to best commit fraud against their spouse by concealing and squirreling away equity accrued during the course of the marriage.
Which won't work or happen.
 

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