Shares

Does anyone have experience of how shares, which have been awarded during the marriage but have not vested yet, are divided up? Are they considered a matrimonial asset?

In my case it takes a number of years before they become accessible to sell and this is also dependent on my continued employment at the company too.

The problem is that it is very difficult to calculate what they will be worth in the future and how much CGT will be applicable.

I am going through mediation and need to get an idea of the general principles applied in this scenario.

It looks like they are classed as a marital asset based on this article:

evanssolicitors.co.uk/family-law/how-are...ed-in-divorce-cases/

Are they shares one of you actually already owns or are you referring to a share option where you may purchase them in the future?

It is deferred compensation that I am awarded every year. I am awarded an amount every year and they vest over 4 years. I don't purchase them (they are not share options) and I don't own them until they vesting date is reached, the condition is that I remain employed for that period, if not, then they are forfeit.

The concern I have with these being in the marital pot is that making any assumptions on the price and CGT is going to be inaccurate. It is also possible I will never receive them if I leave, get made redundant or get fired.

Their value is what you can get for them today.
As you say, you might never get them.

They need to be declared. Any value ascribed to them can be based on current share price and CGT worked out on this basis. However this should all be heavily caveated with a clear explanation of the type of share and terms by which they can be accessed. In a needs case they may be seen as a future realisable asset on your side of the balance sheet especially if your ex needs a greater share of the capital to rehouse.

Hadenoughnow

Thanks for the reply, yes this is my concern. My wife is getting 80% of the realisable assets to rehouse now.

I have a number of assets which are inaccessible at the moment. What I am concerned about is that if these shares are used as a realisable asset now, then this could be added to my side of the balance sheet and other assets traded off which are eventually accessible.

The problem I have is if this does happen, and then they are never accessible because I have left the company, then I am have traded an asset such as a pension in place of this.

I think the fair option would be to share the risk, assign half of the shares to her and the other to me. That way if the shares are sold we both benefit but if there are lost, we both lose.