Tag Archives: valuation formula

During high net worth divorces when well-compensated spouses divorce, one issue that may arise is how to deal with stock options held by a spouse as part of his or her benefit package.  In Pennsylvania, such stock options are considered a form of deferred compensation designed to induce the employee/spouse to remain loyal to the […]



Stock options are considered deferred compensation, much like a pension, thus marital property subject to distribution in a divorce. As options are usually not transferrable, a “buy-out” of the non-employee spouse is required. The simplest method to value a buy-out is to subtract the exercise price of the options from the market value. However, this […]