How to Protect RSUs in Prenuptial Agreements

 

English Alt Text: A four-panel comic shows a couple discussing RSUs and prenuptial agreements. Panel 1: The woman says they should include her RSUs in their prenup. Panel 2: The man worries the stocks might be divided in divorce. Panel 3: The woman explains a prenup can safeguard them. Panel 4: She adds that unvested RSUs can be excluded, and he agrees.

How to Protect RSUs in Prenuptial Agreements

Restricted Stock Units (RSUs) are a valuable form of equity compensation, especially in tech, finance, and startup environments.

However, if you're planning to marry, your RSUs could be considered marital property — making them subject to division during divorce.

By proactively including RSU-specific provisions in a prenuptial agreement, you can protect your equity and minimize legal disputes in the future.

πŸ“Œ Table of Contents

πŸ’Ό What Are RSUs and Why They Matter in Divorce

RSUs are company stock grants that vest over time based on continued employment or performance milestones.

Even if RSUs are not yet vested, family courts may consider them part of the marital estate depending on local laws and timing.

Unprotected RSUs can lead to complex valuations, negotiations, and even forced liquidation in a divorce settlement.

πŸ›‘ How a Prenuptial Agreement Can Protect RSUs

A prenuptial agreement is a legal document signed before marriage that outlines how assets — including RSUs — are handled in divorce or death.

It allows both parties to agree in advance whether unvested and/or vested RSUs are considered separate or marital property.

Key benefit: Prevents post-divorce disputes and sets clear expectations for equity ownership.

⏱ Addressing Timing and Vesting Clauses

Your prenup should clearly define:

- Whether RSUs granted before marriage but vesting after are considered separate

- How RSUs granted during the marriage but vesting post-divorce are treated

- Whether performance-based equity is split differently from time-based equity

Ambiguity here can lead to litigation. Precision is key.

πŸ“œ Sample Clauses for RSU Protection

Sample language to consider (customized by your attorney):

"All RSUs granted before the date of marriage, whether vested or unvested, shall be the separate property of the recipient."

"RSUs granted during the marriage shall be considered the separate property of the recipient, regardless of vesting schedule, unless otherwise agreed in writing."

Consult a lawyer familiar with state laws and RSU taxation.

- Both parties should have independent legal counsel

- Disclose all RSU grants, schedules, and current values

- Allow sufficient review time before signing (avoid coercion claims)

- Consider periodic updates to the agreement as new RSUs are granted

- Ensure notarization and compliance with state-specific enforcement standards

πŸ”— Further Resources

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