When a couple decides to get a divorce, one of the main things they must consider is how to divide their property. This includes everything from the family home and cars to investments, retirement accounts, and other assets. However, for some couples, there might be additional complexities when it comes to property that was acquired through stock options or bonuses during the marriage. New Hampshire has specific laws and guidelines in place that allow couples to ensure a fair distribution of this type of property.
Understanding Marital Property in New Hampshire
Before diving into the division of stock options and bonuses in a New Hampshire divorce, it’s important to understand what constitutes marital property. In general, any assets acquired by either spouse during the marriage are considered marital property, regardless of how the title or account is held. This comprehensive definition includes various assets:
- Real estate
- Vehicles
- Bank accounts
- Retirement accounts
- Investments
- Business assets
- Stock options and bonuses
However, it’s worth noting that some assets are typically excluded from the marital estate and are not subject to division during a divorce. These exclusions may include:
- Assets acquired before the marriage
- Assets acquired after the divorce filing
- Inherited assets (unless they have been mixed with marital assets)
- Gifts specifically designated for one spouse
Dividing Stock Options in a New Hampshire Divorce
Stock options are a common form of compensation provided by employers to their employees. These options are often granted as a reward for achieving certain performance goals or staying with the company for a predetermined period. In most cases, stock options vest over time, meaning they cannot be exercised until a specific duration has passed.
When it comes to stock options in a New Hampshire divorce, they are generally considered marital property, even if awarded solely to one spouse. However, their value might be subject to the valuation of the employee spouse’s future income. Furthermore, the court typically divides the stock options proportionally based on the length of the marriage during which they were earned. For instance, if stock options were earned during a five-year marriage but the employee had been with the company for ten years, only half of the stock options’ value would be considered marital property.
Division of Bonuses in a New Hampshire Divorce
Unlike stock options, bonuses are typically paid out in cash at the time they are earned. They can constitute a significant source of income for individuals. In a New Hampshire divorce, bonuses are generally regarded as marital property, and their division depends on various factors.
Typically, bonuses earned during the marriage are subject to equitable division. However, the court may consider factors such as the duration of the marriage, each spouse’s contributions, the financial needs of each spouse post-divorce, and any other relevant factors. The goal is to divide marital property in a fair and equitable manner that takes into account the unique circumstances of each case.
Conclusion
Dividing property during a divorce can be a complex task, especially when it involves assets acquired through stock options or bonuses. New Hampshire considers these types of property as marital assets and subject to equitable division. By familiarizing themselves with the laws and guidelines surrounding property division, couples can approach the process with a better understanding and work towards a fair distribution that allows them to move forward with their lives.