The Challenge of Executive Compensation
In high-income New York matrimonial and estate proceedings, a substantial portion of net worth often resides in complex, illiquid executive compensation vehicles: Restricted Stock Units (RSUs), stock options, carried interest, and deferred bonus retention pools.
Mandatory Disclosure on Section IV (Assets)
Under 22 NYCRR § 202.16, all deferred compensation awards must be disclosed on Section IV of Form UD-11, regardless of whether they have vested. The disclosure must detail:
- Grant date, vesting schedule, and vesting criteria (performance vs. tenure);
- Current stock ticker price and fair market value if vested;
- Contingent unvested shares and potential forfeiture triggers.
The DeJesus Coverture Fraction Formula
In DeJesus v. DeJesus, 90 N.Y.2d 643 (1997), the New York Court of Appeals established a two-tiered coverture formula to separate marital equity from separate equity, distinguishing between stock grants rewarding past marital labor versus grants incentivizing future post-commencement services.