From the Book: Divorce Amicably
This is a chapter summary from Chapter 6 of Divorce Amicably, a guide to navigating separation with dignity and cooperation.
Chapter 52 Author: Laurie Dyke
Laurie Dyke is a Certified Public Accountant, licensed in Georgia and Florida, Certified in Financial Forensics (CFF) and Certified Fraud Examiner (CFE) with 30+ years experience as a financial investigator. She was an auditor and consultant with Ernst & Young, started and managed a consulting practice for a regional CPA firm, has ten years experience as a financial executive and is a business owner.
Laurie is the Founding Partner of IAG Forensics. She manages the firm’s family law practice, in addition to being a consulting and expert witness in business litigation and fraud investigation cases.
Chapter 52's Guide to Valuing Pensions, Stock Options, and RSUs
The most valuable assets in many divorces—pensions, stock options, and restricted stock units—are also the most misunderstood and frequently mishandled, potentially costing divorcing spouses hundreds of thousands in lost value. In this technical chapter, forensic accountant Laurie Dyke reveals why these employment-based assets can't be valued by simply looking at a statement, and how their worth depends on unpredictable future events like retirement dates, mortality, and stock prices. She exposes the hidden complexity non-employee spouses never see: vesting schedules, coverture fractions, ERISA regulations, and the critical difference between qualified and nonqualified plans.
Dyke provides specific guidance for identifying these assets through summary plan descriptions, year-end pay stubs, and equity award letters—documents many employees don't even know exist. She explains the mathematical models used to determine present value of future pension streams and the intrinsic versus extrinsic value of stock options. Most importantly, this chapter reveals the tax implications and transfer restrictions that can turn a seemingly valuable asset into a trap if not properly understood and documented in divorce agreements.
Four Complex Asset Insights from Chapter 52
Who Needs Chapter 52's Complex Asset Education
This chapter is essential for anyone whose spouse has employer-provided pensions, stock options, RSUs, or executive compensation packages. It's crucial reading for non-employee spouses who don't understand what their partner actually owns, and employee spouses who assume these assets are "theirs" and not marital property.
Perfect for couples in tech companies with equity compensation, government employees with complex pension plans, and executives with nonqualified deferred compensation. Essential for those attempting to value these assets without professional help or trying to understand why expert valuations vary so widely. Whether you're dividing millions in tech stock options or a teacher's pension, Dyke's framework ensures you understand what you're dividing and how to do it properly.
Get your copy of "Divorce Amicably" today and learn how to properly value and divide complex employment assets—because mishandling pensions and stock options can cost hundreds of thousands in lost value or unexpected tax bills years after your divorce is final.
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