Leaving assets out of financial discosure

What is the name of your state? Missouri

If a divorce goes through, and it is found that a financial asset (stock options) was left out of the financial disclosure, can the divorce be re-opened?

And while we are at it, how are unvested options valued? (About half of these are vested, and half are not.)What is the name of your state?

kate554 said:

What is the name of your state? Missouri

If a divorce goes through, and it is found that a financial asset (stock options) was left out of the financial disclosure, can the divorce be re-opened?

And while we are at it, how are unvested options valued? (About half of these are vested, and half are not.)What is the name of your state?

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Yes, a property settlement (not the divorce itself, but the property settlement) can be re-opened if it is found that a financial asset wasn't disclosed.

However, stock options aren't necessarily worth the potential expense of re-opening the property settlement. You would need to do some serious research on the possible value of the stock options prior to retaining an attorney to handle the issue.

I have already done that research, and it is worth it. I have a statement showing the option price, and I have the current stock price. This is a company that is not going to lose significant value. Even if the stock dropped 30% by the time things were settled, it's still a tidy sum.

kate554 said:

I have already done that research, and it is worth it. I have a statement showing the option price, and I have the current stock price. This is a company that is not going to lose significant value. Even if the stock dropped 30% by the time things were settled, it's still a tidy sum.

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You will have an extremely difficult case; it has been known to happen, but it is not easy.

kate554 said:

I have already done that research, and it is worth it. I have a statement showing the option price, and I have the current stock price. This is a company that is not going to lose significant value. Even if the stock dropped 30% by the time things were settled, it's still a tidy sum.

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Then its time to get yourself an attorney.

Senior Judge, the divorce has not gone through yet, but it's so close that I was afraid I'd get a call Monday from my lawyer saying 'done deal'. So I was just wondering about worst case scenario.

But I'm curious why it would be a difficult case if the divorce was final. Not including an asset that big seems like pretty good cause for re-opening the settlement.

LdiJ, thanks for your responses. When it's all over, I'll come back and post the outcome, good or bad.

kate554 said:

Senior Judge, the divorce has not gone through yet, but it's so close that I was afraid I'd get a call Monday from my lawyer saying 'done deal'. So I was just wondering about worst case scenario.

But I'm curious why it would be a difficult case if the divorce was final. Not including an asset that big seems like pretty good cause for re-opening the settlement.

LdiJ, thanks for your responses. When it's all over, I'll come back and post the outcome, good or bad.

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If your divorce has not gone through, then your lawyer needs to IMMEDIATELY file a motion for further discovery.

Will do!

Thanks!

Not sure in MO but in FL and many other states the entire asset is included regardless if vested or not. Prior to that inclusion some major players would file for divorce immediately before a major vesting date would occur, hence the ichange in the law. This includes retirement plans as well, in FL.

One other comment regarding your comment regarding the exercise price of the options and current market value of the shares. The one method commonly used to value unexercised options utilizes the Black Scholes formula. Comments stating the Co. wont lose significant value are more or less concluded to be a personal assessment. The BSF has a number of variables that can be manipulated to reach an intended result so be careful. The variables need to be clearly stated with appropriate documentation validating their use. Make sure your attorney is familiar with this valuation method and/or has a good contact with a high ranking corporate accountant in a SEC Co..

chitown, thanks for the tip.

He also has an SERP. Currently it's value is about equal to the difference in our 401ks (I have more than him.) I'm thinking of leaving the SERP out of the settlement because of that, (would save us both attorneys fees), but of course will ask my attorney first.

"He also has an SERP. Currently it's value is about equal to the difference in our 401ks (I have more than him.) I'm thinking of leaving the SERP out of the settlement because of that, (would save us both attorneys fees), but of course will ask my attorney first"

Typically a supplemental executive retirement plan's assets are held in the Co's name, not the participants. This is possible due to the plan being non-qualified and is useful in preventing ex spouses and creditors from accessing the asset. You can ask your atty, but I wouldnt get my hopes up if I were you.

Dont you want him to have more than you in your respective retirement assets? If the total value of your retirement plan assets is greater than the other's then you typically distribute in order to equalize. (or concede on other asset distribution)

I've got a spreadsheet of all assets and liabilities, including retirement. I'll rely on my attorney to guide me on what's best, but I appreciate the info I pick up here and elsewhere, so I can at least bring it up.

chitown said:

Not sure in MO but in FL and many other states the entire asset is included regardless if vested or not. Prior to that inclusion some major players would file for divorce immediately before a major vesting date would occur, hence the ichange in the law. This includes retirement plans as well, in FL.

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If Kate has given us the correct info, her hubby has committed a mortal sin worthy of chastisement by the judge.

Non-disclosure in Missouri is big no-no.

The options are nowhere in the paperwork. My only concern is he already cashed them. But I guess if he did, the money is hidden somewhere, because the paperwork says he only has $9500 to his name, other than his 401K and a SERP with a recent balance of $80K.