If you are a divorce attorney seeking a fair property settlement agreement for your client, determining the best way to evaluate pensions and stock options can be complicated. PAC uses the Black Scholes Model, coupled with our own specific formulas and equations to determine the current and future values of securities accounts and stock options of any complexity.
If deferred distribution is used, we draft “as-if-when” domestic relation orders for stock options that take key tax issues into account. Since the options are almost always non-transferable, the order is usually served on the employee, not the plan.
We welcome the opportunity to discuss your stock option and securities valuation needs. Contact our offices to discuss your actuarial valuation needs. For more than 19 years, we have been a leading actuarial pension valuation firm, serving divorce attorneys and marriage dissolution mediators nationwide. We have published articles on the subject of stock option valuation, and we are well-known speakers at professional conferences, continuing legal education seminars, and bar association meetings. If you are looking for a way to value a benefit package that includes stock options, we are in business to help.
There are many issues besides vesting, in terms of the valuation of stock options. Due to the nature of stock options, there is still an assumption of future service. PAC can provide valuation for this speculative financial instrument using the Black Scholes Formula. This method has an application, even in a deferred distribution scenario. Since the options are usually non-transferable, we can draft a domestic relations order for deferred distribution between the parties, using the Black-Scholes value as a settling tool, in the case of default or breach of contract.
We are the stock option valuation actuaries you can count on to get it right for your client. Contact our offices to learn more about how we use the Black Scholes Model to determine the future value of stock options.