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Apr 15, 2026
In today’s tech-driven economy, restricted stock units (RSUs) are more than just perks for employees. They can also be significant portions of a person’s wealth, and by extension, their families’. However, when a couple is divorcing, and they must consider RSUs during asset division, things can get pretty complicated. So, what happens to RSUs in a California divorce? Working with an experienced attorney can help you understand your options.
What Are Restricted Stock Units
RSUs are a type of equity compensation that many tech companies offer. Unlike stock options, which give you an option to buy stocks in a company at a set price, RSUs are actual shares granted to you with conditions. These shares often vest over time or upon meeting certain performance goals. That vesting time is key when it comes to a divorce, along with when the asset was earned.
Today, about 90% of publicly traded companies offer performance-based awards like RSUs to their employees. It’s important for workers who earn RSUs to understand how they can impact your divorce and what your options are to protect yourself.
Are RSUs Considered Community Property?
When it comes time for asset division during your divorce, it’s essential that you determine the status of your or your spouse’s RSUs. Restricted stock units can be community property, separate property, or a mix of both, depending on when and why they were earned. In California, any asset earned during the marriage is generally split between spouses. However, because of how they’re earned and when they vest, RSUs don’t fit neatly into one category.
If the RSU was granted to award work done during the marriage, then it is considered community property, even if it’s expected to vest after separation. However, if the RSU is tied to performance after separation, it could be classified as separate. In some cases, there can be some overlap where RSUs are earned before, during, and after marriage. In these cases, you may need the help of a forensic accountant to determine what share of the RSU is community property.
Challenges RSUs Pose During Divorce
In many tech companies, equity compensation like RSUs account for 35% to 50% of an employee’s total compensation. Because of that, they have a great impact on asset division, particularly when it comes to accounting for a spouse’s income. Challenges posed by RSUs during a divorce include:
- They don’t have a fixed value.
- They lack clear ownership timelines.
- It can be difficult to determine if they are community or separate property.
- They have specific tax implications.
- They require detailed agreements, as they cannot be transferred immediately.
California divorce laws can be complicated, especially when it comes to dividing RSUs. That’s why it’s important to work with an experienced attorney to help you properly value your asset and determine whether it’s marital property or separate property.
How the Law Offices of Rod Firoozye Can Help With RSU Division
At the Law Offices of Rod Firoozye, we’ve been serving the residents of California since 1996, providing dedicated legal support to our clients in all kinds of family law matters. As a Certified Family Law Specialist, Rod Firoozye knows what it takes to defend his clients’ rights and work toward their interests. Having worked in the Silicon Valley area for almost three decades, we’ve worked with countless tech industry workers, often having cases that involve RSUs.
FAQs
What Happens to RSUs in a Divorce?
During a divorce, restricted stock units are typically divided by determining what portion counts as the marital portion. This is determined based on the time between the grant and the separation. Depending on how a couple decides to split the assets, one spouse can immediately buy out the other with cash, or they can opt for deferred division upon vesting. Keep in mind, you’ll have to pay taxes on the value of the asset when it’s vested.
Do I Have to Share the Value of an RSU if It Vests After Separation?
Sharing the value of an RSU if it vests after separation depends on the terms you and your spouse agree to during divorce, as well as when the RSU was granted. If the RSU was granted before marriage, you may not have to share its value. However, if it was granted while you were married, then you and your spouse can decide if you’ll buy them out in cash or if you’ll opt for a deferred division option.
Do I Need a Forensic Accountant for the RSU Division?
While you don’t have any legal obligation to hire a forensic accountant for the RSU division, it’s a smart move to work with one. RSUs can be complex assets, and determining their value and status is complicated. A forensic accountant can trace what portions of an RSU count as community property, apply valuation methods, and uncover discrepancies. A forensic accountant is especially helpful for high-asset divorces, as they can promote fairer asset division.
Is My Wife Entitled to Half My Shares?
Your wife is not automatically entitled to half of your shares. In California, your wife is entitled to half of the community property, although that doesn’t always include RSUs. Typically, these stocks are divided based on when they were earned and vested. If the shares were granted during the marriage, they’ll be split 50/50. However, couples have options for how they plan to split these assets.
Hire a Divorce Lawyer
Dividing RSUs during a divorce isn’t always straightforward, but understanding your options and how they’re valued can make it easier. Hire a divorce lawyer with experience in complex financial holdings to help guide you through this process. The team at the Law Offices of Rod Firoozye can give you the support you need during your divorce case.
Contact our high-asset divorce lawyer to schedule a case review. We can explain how RSUs impact asset division, lay out your options for splitting these assets, and work to protect your rights. Trust our team to provide you with the dedicated and compassionate support you need.
