How Are Stock Options and RSUs Divided in an Illinois Divorce?

 Posted on May 12, 2026 in Asset Division

If part of your pay comes in the form of stock options or restricted stock units (RSUs), you already know how valuable they can be. Unsurprisingly, in a 2026 divorce, assets like these can become one of the hardest things to sort out. Who gets the shares? What happens to grants you have not received yet? 

These questions come up often: according to the National Center for Employee Ownership, 92 percent of U.S. public companies in the NASPP/Deloitte 2024 Equity Incentives Design Survey offered equity below the senior executive level, so these benefits are no longer limited to top executives.

As equity compensation has become more common, Illinois divorce courts are dealing with these disputes more often. A St. Charles, IL divorce attorney at our firm can help you figure out where you stand and protect what you have earned.

What Illinois Law Says About Dividing Marital Property in a Divorce

Illinois courts must divide marital property fairly between spouses, though not always equally. Under the Illinois Marriage and Dissolution of Marriage Act, 750 ILCS 5/503, property gained during the marriage is generally marital property.

The law also has a specific rule for stock options and restricted stock. If they were granted after the marriage and before the divorce judgment, they are presumed to be marital property, even if they have not yet vested or their value is unclear. The court must address them in the divorce judgment, even if the actual division happens later.

How Do Illinois Courts Decide Whether Stock Grants Are Marital or Non-Marital Property?

Courts look at the timing of each grant to decide whether it belongs to the marriage or to one spouse alone. A grant that was given before the marriage and vested before the wedding is typically non-marital property. One given during the marriage is generally marital, even if it has not vested yet. The harder cases land in the middle: grants given before the marriage that vest after it, or grants given during the marriage that do not vest until after the divorce.

For these mixed grants, Illinois courts often use what is called the "time rule." A court looks at the full vesting period and figures out how much of it fell within the marriage. That portion is treated as marital property. If a four-year vesting schedule covers two years of marriage, for example, roughly half of that grant may be considered marital.

How Are Stock Options and RSUs Different in a Divorce?

Stock options and RSUs work differently, and those differences matter when it comes time to divide them.

A stock option gives an employee the right to buy company shares at a set price, called the strike price, at some point in the future. If the stock rises above that price, the option has real value. If it does not, it may be worth nothing.

RSUs work another way. The company promises to give the employee actual shares once a vesting period is met. RSUs always have some value as long as the stock is worth anything, and when they vest, the shares are taxed as regular income.

These differences become enormously important when placing a value on what each spouse should receive. Unvested options with a high strike price may be worth far less than they look on paper. RSUs are easier to predict but still need close review, especially when vesting runs years into the future.

How Is Equity Compensation Valued in an Illinois Divorce?

Putting a dollar figure on stock grants is one of the toughest parts of a high-asset divorce. The share price gives a starting point for public companies, but unvested shares could go up or down before they pay out. Options are harder still, since their worth depends on the gap between the strike price and the market price.

Financial experts are often brought in to review the grants and help both sides agree on a fair number. Some couples split the actual shares when they vest. Others use an offset, where one spouse keeps the stock, and the other gets a larger piece of a different asset to make things even.

Contact a Kane County, IL Divorce Attorney About Your Equity Compensation

Dividing stock options and RSUs calls for a firm grasp of both Illinois divorce law and how these assets work. The attorneys at Weiler & Associates, P.C. bring both to the table. Attorney Tim Weiler is a Certified Financial Litigator, which means he has specific training in handling complex financial disputes in divorce cases, whether through negotiation or in court. To talk through your situation with a St. Charles, IL property division lawyer, reach out to our office today. Call 630-331-9110.