0:04
it’s such an interesting area to talk
0:06
about when you talk about restricted
0:07
stock units because restricted stock is
0:10
not always actually vested and sometimes
0:14
you might be starting a divorce and you
0:17
might have UNR you might have restricted
0:19
stock units that are not vested the way
0:22
to deal with this sometimes is to figure
0:24
out is it an incentive in other words
0:27
are you incentiv getting this restricted
0:31
these restricted stock units to keep you
0:33
in
0:34
place and forward-looking essentially or
0:38
other these restricted stock units being
0:39
given as a bonus for work already
0:42
performed during the marriage now we
0:44
have in New York something called the
0:46
date of commencement of an action so you
0:48
file your summons and at that point the
0:51
action commences as long as you serve
0:53
within 120 days from the filing it’s
0:56
really important to understand as of the
0:59
date of commencement what were the
1:02
vested units of the restricted stock and
1:04
what are the unvested units and then
1:07
whether the unvested units are a bonus
1:10
for the work already performed in the
1:12
past during the marriage before the date
1:14
of commencement or are they futur
1:16
looking so that essentially like golden
1:18
handcuffs that you’re keeping the person
1:21
there as an incentive if they’re an
1:24
incentive then we look at what’s called
1:26
the deusu formula which is a coverture
1:29
fraction formula so that you are getting
1:33
basically credit for working the person
1:36
who’s working is getting more credit for
1:38
actually working through the years and
1:39
the other person who is not the
1:41
nonworking spouse at that point who’s
1:44
not or the person who didn’t receive the
1:46
restricted stock units is not cut off
1:48
entirely but they are getting
1:50
considerably less as the years go on and
1:54
you’re working more years to get that
1:56
restricted stock unit to vest and so you
1:59
need to actually look at the award
2:01
documents and the grant documents in
2:04
order to actually determine what is the
2:06
formula here and whether it is past
2:08
performance or future performance