This article discusses the federal tax issues arising from the equitable distribution of compensatory stock options and restricted stock in divorce. While the tax consequences of distributing vested options and shares are clear, the treatment of unvested rights is muddled. This article explains the state of the law and provides practical advice to divorce lawyers who confront these issues.
Gregg Polsky, Jeffrey D. Fisher, and Zachry R. Potter,
Tax Consequences of Distributing Equity Compensation Rights in Divorce
, 88 Fla. B.J. 14
Available at: https://digitalcommons.law.uga.edu/fac_artchop/1214