Legal Question in Family Law in Maryland

Pre ipo stocks

If my husband has been given 100 shares of stock, but the company has not yet gone public. He will be able to sell the stock when both of the following criteria have been met

a) the company goes public

b) after two years

If we are getting a divorce this year, will I be able to get a portion (half) of this future asset.

Asked on 12/22/03, 10:27 am

2 Answers from Attorneys

David Bulitt Joseph, Greenwald & Laake

Re: Pre ipo stocks

It is likely that the options or stock received by your husband from his employer would be considered marital property and therefore subject to "equitable distribution" by the Court.

If you would like to talk further, please do not hesitate to contact me at 301 220-2200.


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Answered on 12/22/03, 10:30 am
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Pre ipo stocks

As the IPO stock is acquired during marriage, so it is marital property and subject to distribution.

There are exceptions where certain acquired assets are not deemed marital property. These exceptions do not appear to apply in your situation. This type of asset is complex

and you have numerous options. One course of action is to enter into a separation agreement whereby you retain control

over things rather than leaving matters to be determined in court. Obviously your options vary with the content of such an agreement. You should seek counsel before entering into a separation agreement.

(410) 799-9002

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Answered on 12/22/03, 1:24 pm

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