Executive Compensation in Divorce
Equity and deferred pay are frequently the largest assets in a marital estate and the last ones anyone lists. Restricted stock units, options, carried interest, and deferred compensation each raise the same two questions in a different form: how much of this award was earned during the marriage, and what is it worth when it has not yet vested or been paid. Law Offices Of SRIS, P.C. handles these disputes. Call (888) 437-7747.
Allocation Depends on What the Grant Rewarded
An award granted during the marriage for past service is treated differently from one granted during the marriage as an incentive for future service, and one granted before the marriage that vests during it is different again. Courts commonly allocate using a coverture fraction, a ratio of marital service to total service required for the award. Which numerator and denominator apply comes from the grant documents rather than from a general rule, which is why those documents have to be obtained rather than described.
Valuing What Has Not Vested
An unvested award may never be paid. It can be forfeited on departure, it can be subject to performance conditions that are not met, and its ultimate value may depend on a share price years away. Because of that uncertainty, these interests are sometimes divided in kind, with the non-employee spouse receiving a share if and when the award pays, rather than valued and offset immediately. Each approach allocates risk differently and neither is automatically preferable.
Virginia, Maryland, the District of Columbia, New Jersey, and New York all divide marital property by equitable distribution rather than by community property rules. That means a court weighs statutory factors rather than applying a fixed split, and the factors differ between the five. Nothing on this page describes a rule that applies identically in every one of them.
Frequently Asked Questions
Are unvested RSUs marital property?
Partly, in most cases. The portion attributable to service performed during the marriage is generally marital, and the rest is not. The allocation is done by formula and depends on what the grant rewarded.
What is a coverture fraction?
A ratio used to allocate an award between marital and separate portions, comparing service during the marriage to the total service the award required. The precise formulation depends on the grant terms and the jurisdiction.
How is carried interest handled?
It is difficult because the value depends on future fund performance and the interest may be subject to clawback. It is often addressed by dividing the payment stream if and when received rather than by fixing a present value.
About Mr. Sris
Mr. Sris, Owner and Founder of Law Offices Of SRIS, P.C., has practiced since 1997. He is a former prosecutor, and that experience shapes how he builds a documentary record. He is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. His background at George Mason University in accounting and information systems applies to complex financial and technology-related cases, which is where a contested property dispute usually turns. Mr. Sris and the firm’s Of Counsel attorneys handle these matters together, with the division of work set at the start of the engagement.
Speak With Mr. Sris
Request a consultation. Reach our location at (888) 437-7747. Bring tax returns, statements for every account, any agreement signed before or during the marriage, entity documents for any business interest, and a short written timeline. That material lets the first conversation move past intake and into the questions that decide the case.
Last updated: August 25, 2026
This page provides general information and does not create an attorney-client relationship. The law differs between states, and nothing here is a substitute for advice about your own circumstances. Case results depend on a variety of factors unique to each case. Results may vary.
Attorney Advertising. Law Offices Of SRIS, P.C., principal office: 4008 Williamsburg Court, Fairfax, VA 22032. By appointment. Call (888) 437-7747 to schedule.
Attorney advertising. Prior results do not guarantee a similar outcome.