Navigating the Challenges of a Gray Divorce

Going through a divorce can be a difficult and emotional process at any stage of life. However, when couples decide to part ways later in life, it presents its own set of unique challenges. This phenomenon is known as a gray divorce, and it has become increasingly common in recent years.

If you find yourself facing divorce at an older age, make sure you have the right guidance and legal representation. Let’s talk. Call Pence Law Firm at 304-345-7250 to set up a time to meet with our divorce team.

What is Gray Divorce?

Gray divorce refers to the separation or divorce of individuals who are generally in their 50s, 60s, or even older. Often, these are couples who have spent decades together, building a life side by side. The reasons behind such a decision to part ways later in life can vary widely, including feelings of disconnect after children leave home, differences that have grown over the years, or finding themselves wanting different things out of life after retirement.

Unlike divorces that occur earlier in life, gray divorces carry unique challenges due to the long-term intertwining of life, finances, and family dynamics. For many, it’s not just about ending a marriage; it’s about redefining one’s life in the later years. The term gray divorce captures not just the age of those involved but also the complex nature of the lives they have built together.

The Unique Challenges of Gray Divorce

Embarking on a gray divorce means working through obstacles that younger couples rarely face. One major hurdle is the division of retirement benefits. After years of contributing to these funds, determining who is entitled to what can be complex. Social Security benefits also come into play, requiring careful consideration to ensure both parties can maintain their standard of living.

Another poignant challenge is health care. As we age, our health care needs often increase, making access to adequate medical coverage paramount. The question of who will bear the cost of health insurance or long-term care can create significant stress.

Then there’s the emotional landscape to traverse. Gray divorce can unearth deep-seated emotions tied to identity, companionship, and the future. Older adults may worry about spending their golden years alone or fear entering the dating scene after decades.

Lastly, the dynamic within the family can shift dramatically. Adult children may struggle to understand or accept their parents’ decisions, and the redistribution of family heirlooms can make this challenging time even more painful.

Financial Implications and Asset Division

Understanding the financial implications and dividing assets equitably becomes a cornerstone of the process. For couples who’ve spent years, perhaps decades, weaving their financial lives together, untangling their financial needs can be time-consuming. Assets like retirement accounts, property, and investments need to be examined closely. This stage might involve complex decisions about how to split savings accounts, who keeps the family home, and how investments are divided to support both individuals’ futures.

Navigating Social and Family Dynamics

Navigating social and family dynamics during a gray divorce requires delicate handling and an open heart. As individuals embark on this transition, friendships, and family ties that were once steady may experience shifts. It’s not uncommon for shared social circles to feel the strain, leading to changes in relationships and possibly resulting in the need to forge new connections.

Communication is crucial in managing these changes, especially when it comes to adult children. It’s important to approach these conversations with honesty, acknowledging the complexity of emotions involved for everyone. Ensuring that dialogue remains open can help ease the transition, allowing family members to express their feelings and concerns in a safe space. This process is not about assigning blame but rather about moving forward with respect and understanding for each individual’s experience.

Adapting to the new social landscape post-divorce can also open doors to new opportunities. Engaging in community activities, joining clubs, or taking up hobbies that interest you can pave the way for meeting new people who share similar interests. These steps can not only enrich your social life but also assist in building a support network that’s vital during this significant life change.

Explore Your Next Steps with Pence Law Firm

Divorce can be painful, but it can also open the door to the next stage in your life. Make sure you walk away with what you need to start over. Contact us online or call us at 304-345-7250 to discuss your Charleston divorce.

Challenges for Divorces with Special Needs Children

Divorce can be a challenging process for any family, but when special needs children are involved, the complexities can be even greater. Parents who are navigating a divorce while caring for a child with special needs may face unique legal, emotional, and financial challenges.

If you’re facing divorce while caring for special needs children, it is crucial that you know what to expect. Let’s discuss your concerns. Call Pence Law Firm at 304-345-7250 to discuss your options with our family law team.

Understanding Custody and Support Needs in This Situation

Navigating divorce when you have a child with special needs adds a layer of complexity to custody and support discussions. The focus must always remain on what’s best for the child, taking into account their unique requirements and routines. Crafting a custody plan demands thoughtfulness – it’s about more than just where the child will live. It involves considering the logistics of medical appointments, therapy sessions, and other specific needs your child might have. Both parents need to be integral in the decision-making process, ensuring they are on the same page when it comes to their child’s care and overall well-being.

In these circumstances, flexibility and communication between parents are paramount. An agreement that outlines not only the day-to-day care but also long-term planning for the child’s health and educational needs can provide a stable foundation during this transition period. It’s about creating an environment where your child feels supported and can thrive, despite the changes happening around them.

Legal Considerations for Special Needs Children

When dealing with a divorce that includes a special needs child, the legal landscape becomes more intricate. Parents must grapple with decisions regarding who will make key healthcare choices and how to ensure ongoing financial support for their child’s unique care needs—particularly if the child will need care long after reaching adulthood.

Additionally, navigating the maze of government aid and how it might be affected by your divorce is another area where legal advice is invaluable. These discussions allow you both to meet your child’s current needs and plan for their future ones.

Navigating Emotional and Psychological Challenges

Going through a divorce is tough on everyone in the family, and when there are special needs children involved, the emotional rollercoaster can be even more intense. Parents might find themselves wrestling with a mix of heavy feelings, including guilt for the changes their child must face and worry about how to ensure the best possible future for them. It’s crucial to remember that caring for your own emotional and mental health is not selfish—it’s necessary.

Seeking support from friends, family, or professionals can make a big difference. Talking to a therapist or joining a support group can provide a safe space to express feelings and fears, and to receive advice from those who understand what you’re going through. Finding ways to relax and recharge, whether it’s through hobbies, exercise, or simply taking a moment for yourself, can help manage stress.

Financial Planning for the Future

When parents go through a divorce and have a special needs child, thinking about money matters becomes more crucial than ever. It comes down to making sure your child is well cared for, today and in the years to come. This means coming up with a plan that covers their ongoing care, medical expenses, and any other needs they may have as they grow. One way to tackle this is by setting up a special needs trust. This is a smart move because it ensures that money set aside for your child won’t interfere with their eligibility for government benefits down the road.

Additionally, sitting down with a financial planner who knows the ropes of special needs planning can be eye-opening. They can guide you in crafting a financial strategy that not only meets your child’s immediate needs but also secures their future. This does require cooperation and collaboration during a difficult time, but if you are both committed to what is best for your child, it isn’t impossible.

Prepare for Your Divorce with Pence Law Firm

As you begin to prepare for your pending divorce, make sure you have a legal team you can trust. Set up a time to meet with Pence Law Firm now by reaching out online or calling us at 304-345-7250.

Dividing a Variable Annuity in a West Virginia Divorce Settlement

When going through a West Virginia divorce, dividing assets can be a complex and challenging part of the process. One particular asset that may need to be divided is a variable annuity. In this blog post, we will discuss what variable annuities are, how they are valued, and the steps involved in dividing them during a divorce settlement.

Understanding Variable Annuities and Their Value

Variable annuities are a type of retirement savings plan that acts like a personal investment tool. They are so common that they are part of many Americans’ retirement portfolios now. When you get a variable annuity, the insurance company agrees to make regular payments to you based on a predetermined schedule. You either make one payment to the company or a series of payments. What you ultimately receive depends on how well your investment choices do. Most variable annuities invest in money market instruments, stocks, and bonds. On top of the monthly payments they pay out, variable annuities also offer a death benefit.

Because of their ability to fund your retirement on an ongoing basis and provide for your beneficiary, variable annuities can be highly sought-after assets during a divorce.

Asset Division in West Virginia

When a couple decides to go their separate ways in West Virginia, the law requires that everything they own together must be divided fairly. This doesn’t always mean splitting things exactly down the middle, but rather, deciding on a division that is just and reasonable. Assets that were gained during the time they were married are usually considered marital property and include everything from houses and cars to savings accounts and retirement accounts.

Numerous factors come into play. These include how long the couple was married, the financial condition of each person after the divorce, and how much each person contributed to the marriage. This approach aims to ensure that both individuals can move forward on somewhat equal financial footing.

Valuing and Dividing a Variable Annuity in Divorce

In a divorce, figuring out the worth of a variable annuity and how to split it between both parties is a crucial step. First off, it’s essential to find out the current market value of the annuity. This step might sound simple, but the fluctuating value of a variable annuity can complicate it. Furthermore, you also have to consider fees, tax implications, and the potential of the fund to perform better or worse in the future.

After knowing what it’s worth, the next challenge is deciding how to fairly divide it. Courts have a couple of ways to do this. Sometimes, they might give the annuity to one spouse entirely, balancing this by giving the other spouse different assets of equal value. In other cases, the variable annuity is divided in an equitable way and the party receiving part of it will need to roll their share of it into a new retirement account.

Tax Implications to Consider

It is crucial to divide a variable annuity as part of your divorce agreement to avoid unnecessary financial penalties and tax consequences. For example, if a couple divides a variable annuity outside of their divorce as an under-the-table agreement, they will likely be hit with a 10% withdrawal penalty and have to pay income taxes on the amount withdrawn. But if the transfer is done via a qualified domestic relations order, the couple can avoid these consequences.

There may be tax implications to consider in the future, and both parties should be aware of their responsibilities and rights when they accept a retirement account as part of a divorce. You should know about any ongoing fees or taxes you need to pay. This is why we often recommend working closely with a qualified financial planner as part of your divorce; you don’t want to lose part of your wealth to avoidable fees and penalties.

Contact Pence Law Firm Today to Start Your Claim

Preparing for divorce in Charleston? The team at Pence Law Firm is here for you. Give us a call at 304-345-7250 or get in touch with us online to set up a consultation. We’re here to learn more about what you’re looking for in your divorce and what you want life to look like moving forward.

How Do I Divorce My Military Spouse Who Is Stationed Overseas?

Going through a divorce is never easy, and when your spouse is serving in the military and stationed overseas, the process can become even more complex. Military divorce involves unique legal considerations, and navigating the intricacies of international laws and military regulations can be overwhelming.

It’s important to work with an attorney with experience in this type of divorce. The team at Pence Law Firm can help. Call us at 304-345-7250 to get started.

Understanding Military Divorce Basics

A number of factors make military divorce more complicated than a divorce between two civilians. This means things like where they’re stationed, how often they move, and military perks like health care and housing money can all be affected. Knowing the laws regulating military divorce is key. They decide everything from how you split up assets like pensions to figuring out support payments.

Jurisdiction and Where to File

Choosing the right place to file for divorce is a critical first move when your spouse is in the military and stationed overseas. You generally have three options: the state where you currently live, the state where your spouse is a legal resident, or the state where your spouse is stationed. Each state has its own divorce laws, so picking the right jurisdiction is more than just a matter of geography; it can affect the outcome of your divorce. If your spouse is overseas, they aren’t a resident of that area, so you would file where you or they are currently a legal resident. In West Virginia, you can file a fault or no-fault divorce, which may further affect important decisions made during your divorce.

Serving Divorce Papers to an Overseas Spouse

Serving divorce papers to a spouse stationed overseas can be a challenge. The process gets a bit tricky due to the Servicemembers Civil Relief Act, which protects military members from being unfairly taken to court while they’re on active duty. Because of this, you’ll need to follow specific steps to ensure your spouse receives the papers legally and properly. 

This often involves using international service methods that comply with both U.S. and foreign country regulations. Additionally, you might have to engage with military legal assistance offices to navigate these waters. The key is to ensure the paperwork is handled correctly to avoid any delays or legal issues. You want to strike a balance between respecting your spouse’s current work situation and location, and your own goal to end the marriage and avoid unnecessary delays.

Navigating Military Regulations

One aspect of military divorce that can muddy the waters of your divorce is the number of regulations your spouse must follow. For example, most states—although this does not include West Virginia—do not “punish” one spouse for being unfaithful. However, adultery is illegal in the military, and if you are filing for divorce due to adultery, that could affect your spouse’s military career. Additionally, they are still expected to provide financial support when they are overseas. If they have used their time overseas to avoid supporting you and have left you struggling to pay the bills, that will also affect how the military handles your divorce.

Child Custody and Support Considerations

This is another topic that can complicate a military divorce. When your spouse is overseas, you obviously can’t split physical custody of your child. Furthermore, you may not even know what the future of your custody agreement looks like since predicting the military’s next move is nearly impossible. Even if your spouse is not able to claim parenting time, though, they are still required to provide financial support to your child—and, depending on the details of your marriage, they may also have to financially support you via spousal support. Your Charleston divorce attorney can help you understand what your current custody situation may look like and how it may change in the future as your ex’s military career evolves.

Choose Pence Law Firm for Your Complex Military Divorce

Choosing divorce can be a very stressful decision, but having the right legal team by your side can help alleviate your stress. Let’s talk more about your legal options. Just call Pence Law Firm at 304-345-7250 or send us a message online to set up a consultation.

Navigating the Division of Rare and Valuable Collectibles in High Asset Divorces

Divorce is undoubtedly one of the hardest things you’ll go through, and when valuable assets are involved, it can become even more complex. One of the key aspects of a divorce settlement is the division of assets, including any rare and valuable collectibles that you and your spouse may have accumulated over the years.

Unfortunately, this process can get sticky quickly, especially if both parties have a meaningful connection to the assets in question. We can help. Call Pence Law Firm at 304-345-7250 to set up a time to meet with our Charleston divorce team.

The General Approach to the Division of Assets

In a divorce, splitting up what you own with your spouse is a big part of the process, and it’s all about being fair to both sides. This isn’t just about who gets the house or the savings account. Antiques and collectibles are considered assets too. The goal here is to make sure everything is split in a way that’s even and right, taking into account what each person has put into the marriage. That doesn’t just mean what each party has contributed financially to the marriage; it also refers to non-financial contributions.

Valuing Your Collectibles

Figuring out how much your rare and valuable collectibles are worth is a critical step in making sure they’re divided fairly when you’re going through a divorce. The worth of these items isn’t always clear-cut because it can change based on how much people want them, their condition, and their history or background. 

To get a true sense of what your collectibles are worth, it’s smart to bring in experts like appraisers. These professionals have the skills and knowledge to give you a reliable estimate of your items’ value. This is generally harder and more time-consuming than valuing something like a home, vehicle, or retirement account, which are considered fairly standard assets. Be prepared to bring in an appraiser with expertise in your type of collection.

Negotiating the Division of Collectibles

When it’s time to talk about who gets what from your collection of rare and valuable items, keeping a cool head is crucial. This stage can stir up strong feelings, especially if both you and your spouse cherish the same pieces. Going into these talks ready to find a middle ground can make a big difference.

Start by listing all the collectibles and their estimated values, which you’ve already figured out with the help of experts. This list will be your guide. Then, discuss each item openly, considering both your emotional attachments and their financial worth. It might help to decide on some trade-offs, especially if one party is more connected to the collectibles than the other.

If one party doesn’t want to keep the collectibles at all, you may be able to negotiate a situation in which other assets are used to offset the value of the collectibles.

Factors That May Complicate the Division of Your Collection

Splitting up a collection of rare and valuable items during a divorce isn’t always straightforward. For example, what happens if the collection is worth more intact than it is split apart? This isn’t always the case and depends entirely on the specifics of your collection and what collectors value. But if your collection will take a hit by being split up, it may make more sense to fight to keep it intact.

You may also face wildly different valuations, especially if both parties bring in their own appraisers. When this happens, it can be hard to figure out where the truth lies. You may choose a number in the middle of the two, bring in a third appraiser with more expertise and educational background, or look for reasons to explain the discrepancies in the proposed values.

Regardless, having an experienced divorce attorney is crucial throughout this process. Look for one with experience in high-asset divorces, including those with unique collectibles and antiques.

Prepare for Divorce with Pence Law Firm

At Pence Law Firm, our Charleston family law team is committed to helping clients like you prepare for a fresh start after divorce. Take the first step now by contacting us online or calling us at 304-345-7250 to set up a consultation.

Protecting Your Venture Capital Interests in High Asset Divorces

High-asset divorces come with a variety of unexpected challenges and hurdles that other couples don’t have to handle. Generally, the more money a couple has, the harder it is to split up their assets when they divorce. While a couple of standard means may have retirement accounts, a couple of bank accounts, and a family home to split up, high net-worth couples often have diverse, complex portfolios that are incredibly difficult to value and split up in a fair way. This is especially true when a couple has venture capital interests.

Interested in protecting your venture capital interests in a Charleston divorce? We can help. Call Pence Law Firm at 304-345-7250 to set up a consultation with our team right away.

How Venture Capital Interests Are Treated in Divorce

Depending on when you acquired your venture capital interests, they may be considered separate or marital property in West Virginia. People invest in startups and businesses when they believe in their long-term potential, and once your investments come to fruition, you may enjoy significant financial benefits. However, the time at which you made your investments and when you pulled your returns from your investments may determine how they are split up.

To determine this, pull all of the documentation you have for your investments. You’ll want documentation on where the investment money came from, when you transferred the investment funds, under whose name the transfer was made, and when you expect to collect your returns. Your attorney can use this to help you determine if you will be able to keep your venture capital interests separate or if they will be treated as marital property.

Legal Considerations

In West Virginia, assets that are acquired prior to a marriage or after a couple has separated are generally considered separate property. This is the best outcome for you since separate assets do not have to be divided during divorce. However, if you invested in venture capital funds during a marriage, used marital funds to make your investments, or used the returns to benefit your family, it’s likely that your venture capital interests will be considered marital property.

It’s also important to look at the role that you both played in your venture capital interests. For example, if both parties researched potential investment opportunities, put their names on major purchases, and presented themselves as a united front to business owners, it would be hard for either party to claim that their venture capital investments were their sole property.

However, even if one party was exclusively responsible for handling the business side of the marriage, that doesn’t mean that their venture capital interests would be considered separate property. Even if one party does not make financial contributions to marital assets, their non-financial contributions are enough to warrant a fair division of shared property.

Protecting Your Interests

If you have a significant amount of money invested in venture capital interests, it’s likely that you’re highly motivated to keep those investments to yourself as you prepare for life as a single person. This is why we recommend talking to a Charleston divorce attorney as early as possible in the process. If you’re driven by the value of your venture capital interests, odds are good that your ex-spouse is also interested in getting their fair share of them. By bringing in an attorney early, you can get realistic and practical guidance regarding how likely you are to keep your venture capital investments separate and what you possibly stand to lose during negotiations.

Perhaps you are willing to make other sacrifices during a divorce to keep your venture capital interests separate. For example, maybe you are willing to give up your fair share of the marital home or investment accounts to support a fair division of assets. You can discuss these options and other potential strategies with your lawyer.

Explore Your Legal Options with Pence Law Firm

When you’re ready to move forward with your divorce, it’s time to talk to the high-asset divorce team at Pence Law Firm. We understand that you face unique challenges and that you need experienced legal representation throughout this process. Get started now by calling us at 304-345-7250 or sending us a message online.

Can I Move Out of the Area with My Child After a West Virginia Divorce?

Divorce brings significant changes in every area of life, and for many, relocation is a necessary transition. But when relocation occurs after a divorce, you have to go through additional legal steps to ensure that you can move with your child. As is the case with any court case that involves children, West Virginia courts put the child’s best interests first and foremost. This may affect whether or not you are permitted to move.

Considering a big move after a divorce? Make sure you protect yourself and cover your bases before making the big move. Call Pence Law Firm at 304-345-7250 to set up a consultation now.

Limitations When Moving

After a divorce, keeping your child’s life as routine and predictable as possible is likely one of your top priorities. Still, sometimes relocation is the best move for your future—and when it is, you’ll need to be familiar with state laws and limitations.

Under state law, a parent who is governed by a parenting plan must provide advance notice of any intended move. This involves filing a verified petition with the court and having that petition served upon the other parent at least 90 days prior to the anticipated relocation. The summons must be served no later than 60 days prior to the move. If you want to file when the relocation is less than 90 days away, be prepared to show that the 90-day requirement is impracticable in your specific situation.

The Child’s Best Interests

The court will always put the child’s best interests first when determining whether or not relocation is the best option for them. As a parent who wants to relocate, the burden of proof is on you; you will need to demonstrate that your moving plans are in good faith and that you genuinely believe that the move will be in the best interests of the child. You must also be able to show that there are no other alternatives available to you.

The court considers relocation to be for a legitimate purpose if it is to:

  • Be close to immediate family members
  • Better meet the child’s health needs
  • Protect the child’s safety or the safety of a family member
  • To pursue an important employment or educational opportunity
  • To be with the parent’s spouse or significant other with whom the parent has lived for at least a year

Steps Required to Move

When you draft your verified petition, you will need to include a variety of information. Your petition should include:

  • The intended relocation date
  • The address of the new residence
  • Why you plan on relocating
  • How custodial responsibility would be changed if the proposed move was permitted
  • A request for a court hearing

Remember that the court will be looking for proof that your petition was made in good faith, so provide all requested information and be clear in your reasoning.

Upon receipt of your petition, the court will schedule a hearing no less than 30 days ahead of the intended move. Both parents will have a chance to make their case to the court, and the court will likely allow the relocation if it is in the child’s best interests and if there are no other options available to the parent requesting relocation.

Creating a New Parenting Plan

If the relocation means that the current parenting plan will no longer be practical, the court date will also involve creating a new parenting plan that allows the non-custodial parent time with the child. This is something you may wish to discuss with your co-parent ahead of the court date, particularly if they are open to the move and are not planning on fighting you. 

The court may want the child to return to the other parent every other weekend, once per weekend, or less frequently, depending on how far away they will be moving. The non-custodial parent may get the opportunity to make up some of their parenting time during summer vacations, holiday breaks, and other long stretches of time without school.

Explore Your Legal Options with Pence Law Firm

If you want to relocate with your child in West Virginia, it’s important to plan ahead and discuss your next steps with the team at Pence Law Firm. We can help you understand the challenges you may face and prepare a compelling case. Give us a call at 304-345-7250 or reach out online to set up a time to talk.

Are Non-Custodial Parents Responsible for College Tuition in West Virginia?

There’s no shortage of challenges in a West Virginia divorce, and for many couples, children’s college funding is a source of contention. College expenses have increased dramatically in recent years, far outpacing income growth and making college inaccessible for a growing number of college students. It’s important, then, for couples to decide early on how they will cover their children’s college expenses. But there’s a difference between what parents would like to do and what they are legally obligated to do—and that distinction often comes up during divorce.

Learn more about parents’ obligations after divorce, and to discuss your divorce case in greater detail, call Pence Law Firm at 304-345-7250 and set up a consultation.

What the Law Says Regarding College Expenses

While some states have addressed college funding as it relates to divorce, West Virginia has no law on the books outlining a parent’s requirement to cover their child’s college expenses. When child support covers educational expenses, that relate to K-12 expenses, such as private school tuition, school fees, and school supplies.

This doesn’t mean that divorcing parents can’t be required to cover college expenses for their children; it means that divorce proceedings do not automatically require parents to cover their children’s college expenses, regardless of income. But you can still negotiate college funding as part of your divorce agreement, although you may have to give up considerable concessions to do so.

What if College Funding is Important to You?

Finding out that the court will not automatically require one or both parents to pay for children’s college costs can be disappointing, particularly if you’re in a situation where one spouse earns significantly more than the other. This is often the case in high-asset divorces. However, you do still have leverage. There is a lot of room for negotiation in divorce proceedings, and if college costs are a top priority for you, you can approach your divorce negotiations accordingly.

Parents are free to include specific provisions in their divorce settlement agreement. They may choose to require that each parent cover a specific percentage of college expenses, require that one or both parents contribute up to a certain amount each year, outline the specific expenses that are included, and specify how payments are to be made. Unless one or both parents are extraordinarily wealthy, it’s helpful to have a cap on how much either party can be expected to contribute each year—you never know how college costs may increase in coming years.

Navigating College Funding

If you want to ensure that your divorce agreement includes provisions for college funding, it’s important to discuss this with your Charleston divorce attorney as soon as possible. They can look at the assets and income of both spouses, determine the best approach for negotiating college funding, and decide on a strategy that’s most likely to result in a favorable outcome. However, don’t forget to consider your needs as you start this next stage of your life. While it’s important to provide for your children’s future needs, you don’t want to do so at the expense of your own financial stability and well-being.

What if you are unable to negotiate college funding during the divorce process? You may want to help your children plan ahead. On your end, you can look into a 529 college fund that provides you with tax advantages and sets aside money for college. Your child can begin looking for scholarships early on in their education and contribute winnings to their college savings. There are thousands of scholarships available for students, both on a national level and just within the state of West Virginia.

There are also other forms of financial aid that can help bridge the gap between college savings and final costs. Pell grants, forgivable loans, and other options can help your child attend school without excessive student debt.

Plan for Your Divorce with Pence Law Firm

The earlier you begin planning for your Charleston divorce, the more time your divorce attorney has to plan and negotiate on your behalf. Start now by setting up a time to talk to one of our experienced family law attorneys. Just call us at 304-345-7250 or reach out online now.

Are Stock Options Marital Property in a West Virginia Divorce?

Divorce can be an incredibly complex and mentally demanding process. If you’re going through a high-asset divorce, you may also be struggling with the division of complex and valuable assets. In particular, stock options awarded as part of one spouse’s employment or their role as an executive officer can be difficult to divide fairly.

If you’re wondering how your or your spouse’s stock options may be handled during divorce, it’s important to explore your options and next steps with the team at Pence Law Firm. Call us at 304-345-7250 to set up a consultation right away.

The Timing of the Stock Options

A huge part of determining whether or not stock options are marital property is their timing. You’ll have to look at the documentation regarding when the stock options were granted. For example, if the individual received stock options prior to getting married, it’s possible that those stocks will be considered separate property—but that’s not guaranteed. We’ll discuss complicating factors below.

If stock options were awarded to one party during the marriage, it’s more likely that those stocks would be considered marital property and would be divided equitably between both spouses as outlined under West Virginia law.

Even if stock options are considered separate property because they were awarded prior to marriage, they may ultimately become marital property if they increase substantially in value during the marriage. Consider, for example, a CEO with extensive stock options. Many of their stocks were granted prior to marriage. However, after getting married, they made major changes within the company that led to the stocks increasing dramatically in value. The other spouse may claim that this increase in value was due to their work at home which allowed their spouse to focus more on their work.

The Vesting Schedule of the Stock Options

However, it’s more complicated than that. You can’t just look at when the stock options were granted—you must also consider when the stock options became fully vested. The vesting schedule refers to when the employee in question is permitted to exercise those stock options. 

For example, if an employee receives a set number of stock options and a percentage becomes vested after two years, the employee can only actually access the partial value of those stocks after two years. 

As you may imagine, this becomes complicated if the marriage ends before all stocks become vested. If the employee has stock options that fully vest over a period of five years but divorces their partner three years in, the court may determine that 60% of the stock options are marital property. This becomes even more complex if the employee receives stock options each year as part of their bonus or general compensation, as each year’s set of stock options will be vested at different levels at the time of divorce.

The Role of the Stock Options in Employment

Another factor you must consider is why the employee receives the stock options in the first place. Perhaps the spouse in question is an executive who made cost-saving cuts during the year. As a reward for their efforts, they receive stock options as part of their year-end bonus. These stock options are compensation for work already completed.

In another example, an employee is working for a startup. The pay is lower than market standards, so in order to encourage employee retention, employees receive stock options that they can only exercise if they stay with the company for a set period of time. In this scenario, the stock options may be considered compensation for future work.

The reason you receive stock options may determine whether or not they are marital property. If they are compensated for work already completed and that work occurred during the marriage, those stock options could arguably be considered marital property. If the stock options are granted during the marriage but they are compensation for work completed after divorce, they may be viewed as separate property.

Facing Divorce? Contact Pence Law Firm Today

This is clearly a complicated and multifaceted issue in your Charleston divorce, so it’s important to explore your specific situation with a family law attorney. Set up a consultation with Pence Law Firm now by calling us at 304-345-7250 or reaching out to us online.

Navigating the Emotional and Financial Challenges of a High-Asset Divorce

People often assume that having more money makes every aspect of life easier. While it can definitely take the edge off of certain problems, it can become a significant liability during divorce. High-asset divorces tend to be much more time-consuming than standard divorces, simply because there is so much to fight over and divide fairly. As you prepare for your divorce, it’s crucial to know what to expect and understand your options.

Ready to start your Charleston divorce case? Call Pence Law Firm at 304-345-7250 to set up a consultation with our team right away.

The Importance of a Comprehensive Financial Assessment

Before you can make any real plans or decisions regarding your high-asset divorce, you need an extensive assessment of your finances. This goes beyond your bank account balances, extending to an entire inventory of your assets, balances of retirement accounts, and information about when each of these assets was acquired. 

For example, if you had a high-value retirement account prior to getting married, much of it may be considered separate property—but anything you contributed to it during your marriage would be considered marital property, which means it would likely be divided.

You’ll also want to document the various income streams funding your marriage. This is an issue that most couples don’t have to worry about, but high-net-worth couples often have lots of income streams that must also be handled appropriately during divorce.

Exploring the Division of Assets

West Virginia, like most other states, follows the legal principle of equitable distribution. This means that assets must be divided in a way that is fair and just, not necessarily in a way that is equal. This allows the court to take a number of factors into account when deciding how assets should be handled, including each party’s earnings, each party’s earning potential, custody decisions, health concerns on either side, and each party’s contributions to the marriage.

This is often the most time-consuming part of a high-asset divorce. The more assets you have, the longer it takes to negotiate what happens to them. It’s important to have a game plan before you start negotiations, which means knowing what your priorities are and where you have some wiggle room.

The Role of Alimony

It’s also important to think about the role of spousal support or alimony in your high-asset divorce. Spousal support isn’t assumed in West Virginia, but it plays a role in a lot of high-asset divorces. If one party stayed at home as a homemaker or stay-at-home parent during the marriage, there’s a good chance the other party will need to provide them with spousal support. 

The amount and duration of spousal support are determined by numerous factors, including the length of the marriage, the financial assets of each partner, how the assets are divided, what each party contributed to the marriage, and whether or not the lower-earning spouse is likely to become self-sustaining at any point in the future.

The Emotional Issues of a High-Asset Divorce

The emotional challenges you may face during a high-asset divorce may take much longer to grapple with than the financial side of your split. It’s likely that you and your spouse built your empire together, and divorce means the end of everything you’ve worked so hard on. Seeing the assets, businesses, and income streams you’ve created together picked apart piece by piece can be extremely painful, and trying to figure out how to navigate family life as a single parent only adds to the burden.

It is crucial that you protect your mental health during this time and get the support you need to navigate your emotional needs. Many people find it helpful to work with a licensed therapist or counselor. You may also seek solace in a local divorce support group, where you can talk to others going through the same difficulties as you.

Explore Your Legal Options with Pence Law Firm

The team at Pence Law Firm is here to help you work through your high-asset divorce and fight for what you need in your post-divorce life. Let’s sit down and discuss your needs—call us at 304-345-7250 or send us a message online to get started.