Page 39 - Family Law Services

• other pertinent details, such as whether the employee’s continued employment is a prerequisite to
vesting or continued ownership, or both, or conditions that accelerate vesting.

Further examples of important documents to request when tracing stock options and warrants are

• brokerage account statements for the account holding the equity-based compensation;

• employee paystubs that reflect the vesting or exercise(s), or both, and the proceeds realized from
these events; and

• bank statements showing the deposit of the proceeds.

Restricted Stock

Similar to stock options and warrants, restricted stock becomes available in the future according to a
vesting schedule and requires apportionment between community and separate property if the restricted
stock is not fully vested at the date of separation. Documents to request when tracing restricted stock in-
clude

• the governing equity plan documents;

• individual grant documents that set forth the number of restricted shares granted;

• the vesting dates;

• whether the employee’s continued employment is a prerequisite to vesting or continued owner-
ship, or both; or

• conditions that accelerate vesting.

Further examples of important documents to request when tracing restricted stock are

• brokerage account statements for the account holding the equity-based compensation;

• employee paystubs that reflect the vesting or exercise(s), or both, and the proceeds realized from
these events; and

• bank statements showing the deposit of the proceeds also may be helpful documents to request
when tracing restricted stock.

Deferred Compensation

Deferred compensation should be reviewed to determine the community and separate property interests
in amounts to be received in the future. Documents to request include the governing plan documents; de-
ferral elections; account statements reflecting deferred compensation balances outstanding, as well as
paystubs reflecting payment of amounts previously deferred; and account statements reflecting the de-
posit and disposition of deferred compensation paid out.

© 2020 Association of International Certified Professional Accountants 37