What Happens to Stock Options and RSUs in an Executive’s Orlando Divorce?

Executive pay packages rarely fit on a single line of a W-2. Between base salary, bonus targets, and equity awards, a growing share of an executive’s real compensation sits in stock options and restricted stock units (RSUs) that vest years after they are granted. That structure is great for retention and tax planning. It is a headache in divorce, because the value of those awards often depends on things that have not happened yet, like a vesting date, a performance target, or a stock price nobody can predict.

If you or your spouse holds unvested equity going into an Orlando divorce, here is how Florida law is likely to treat it.

Marital Property Starts With Timing

Florida is an equitable distribution state. Under Section 61.075, Florida Statutes, the court begins with the assumption that marital assets should be divided equally, then adjusts based on factors like the length of the marriage and each spouse’s economic circumstances. The threshold question for any stock grant is when it was earned, not when it happens to vest.

Equity compensation granted for work performed during the marriage is generally treated as marital, even if the shares vest after the divorce is filed. A signing bonus of stock granted the week before the wedding looks different than a performance award tied to three years of work that overlapped the marriage almost entirely. Courts look past the grant date and ask what the award was actually compensating.

Why Vesting Schedules Complicate Everything

Unvested RSUs and options create a timing mismatch. The parties may be divorcing today, but a chunk of the equity will not become real, transferable value for another year or two. Florida courts have a few common ways of handling this:

• Treating the marital portion as the number of shares earned during the marriage, using a coverture-style fraction based on the vesting period
• Awarding the equity to the employee spouse and offsetting its estimated value with other marital assets, such as home equity or retirement funds
• Ordering that a percentage of shares be transferred or their value paid out to the other spouse as each tranche actually vests

That last option keeps both spouses tied to the outcome for years, which many executives understandably want to avoid. It also runs into a practical wall: many employer stock plans restrict or outright prohibit transferring unvested shares to an ex-spouse, so the mechanics often end up being a cash-equivalent payment rather than a literal handover of stock.

Valuation Is Where the Real Fight Happens

Once the parties agree that a grant is at least partly marital, the next argument is almost always about what it is worth. Options carry a strike price and an expiration date, so their value depends on assumptions about future stock performance. RSUs are simpler in one sense, since each unit generally represents one full share, but their value still moves with the market between the date of filing and the date of vesting.

Executives with substantial equity compensation should expect the process to involve:

• A forensic accountant or valuation expert to model the award’s present value
• A hard look at whether the award was compensation for past service, a retention incentive for future service, or some mix of both
• Tax consequences, since RSUs are typically taxed as ordinary income at vesting and options carry their own tax treatment depending on type

The Bottom Line for Executives

Stock options and RSUs are often the single largest asset in an executive’s marital estate, larger than the house, larger than the retirement account. Treating them as an afterthought in settlement talks is a mistake. Getting the classification and valuation right can be the difference between a fair outcome and one that quietly shortchanges one spouse for years after the ink is dry.

If your marital estate includes equity compensation, deferred bonuses, or other complex executive pay, we can help you sort out what is really on the table. We built our practice around exactly this kind of high-asset case, and we know how to press for a distribution that reflects the full picture. Reach out to the Orlando family lawyers at the office of Steve Marsee, P.A. to talk through your situation, or learn more about how we approach property distribution cases involving executive compensation.

Source:

flsenate.gov/Laws/Statutes/2025/61.075