Employee Stock Ownership Plans (ESOP) in an Oregon Divorce
Employee Stock Ownership Plans in an Oregon Divorce: The Short Version
An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that gives employees full or partial ownership of a company's stock.
Options for the disposition of an ESOP in an Oregon divorce include:
- Divide the ESOP via a Qualified Domestic Relations Order (QDRO) and transfer a portion to the non-employee spouse.
- Allow the employee spouse to retain the assets of the ESOP and assign assets of similar value to the non-employee spouse.
- Transfer shares or interests via plan procedures.
- Sell the ESOP shares and divide the proceeds either equally or as agreed.
There are advantages and disadvantages of each approach, which Matthew will review with you in mediation. Matthew's clients approach ESOPs in different ways depending on their circumstances.
Employee Stock Ownership Plans as Marital Assets
Even though the stock is held in the name of the employee spouse, all property acquired during the marriage is presumed to be acquired by the equal contribution of both spouses, as the law defines it.
An ESOP, like any other property acquired during the marriage, is subject to that presumption and will be discussed in mediation, even if you already agree on how it should be handled. There are always particular nuances that need to be discussed and included in your Marital Settlement Agreement (MSA).
Next Steps
Please consider scheduling a consultation today.
Back to Stocks and Stock Options
Back to Asset Division
Back to Topics to Address in Mediation