Some of the most valuable assets in a divorce never show up on a paycheck. Equity compensation, like restricted stock units (RSUs), stock options, and carried interest, is often tucked away in bonus plans or private partnership agreements. These forms of compensation may not vest for years, but if they were earned during the marriage, they can still be divided under Florida law.
How Courts Divide Equity in Florida Divorce Cases
Florida law considers both vested and unvested RSUs and stock options marital property if awarded during the marriage and before a divorce is filed. To separate what’s marital from what’s not, courts often use a coverture fraction. This formula compares the time the couple was married during the vesting period to the total length of that period.
Take this example: If RSUs vest over four years, and the couple was married for two of them before filing, the marital portion would typically be 50%. Once the court makes that determination, it may order a lump-sum offset or set up a constructive trust to divide the asset as it vests.
Carried Interest in Divorce
Carried interest, or “carry,” is a profit share often earned by partners in private equity or venture capital. It vests over time and may depend on performance hurdles.
In divorce, carried interest is usually treated as a business asset and valued based on expected payouts and risk. Florida law only includes enterprise goodwill in the marital pot, not personal goodwill tied to an individual’s skills or relationships.
Valuation often requires complex models, especially with clawback provisions and long vesting periods.
Why Daubert Matters for Financial Experts
Courts in Florida observe the Daubert standard for expert witnesses. In other words, any valuation expert must employ reliable techniques, such as the Black-Scholes method or scenario modeling, apply them properly, and base their entire analysis on reliable data. A weak report could be struck down totally, jeopardizing your case.
Let Us Help You Make the Right Case
At The Law Office of Wickersham & Bowers, we understand how to track, value, and protect hidden compensation in divorce. Whether you’re facing RSUs, carried interest, or stock options, our team can help you make a strong, court-admissible case. Call us at 386-252-3000 to schedule a confidential consultation.
