Herndon, Virginia · Asset Division
In Herndon, salary is often the smallest part of what someone earns. Stock options, restricted stock units, and grants can be worth more than a year of pay, and they are some of the hardest things to divide in a divorce. Let me walk you through how Virginia treats equity compensation, so you can see what is on the table and what stays yours.
By Alisa Chunephisal, Esq. · Founding Partner, NOVA Legal Professionals
This article is one part of our larger divorce guide. For the full picture, start with our cornerstone, Divorce in Virginia. Here, I will focus on stock compensation alone.
Equity pay is property, not just income
It is easy to think of stock options and RSUs as part of a paycheck. In a divorce they are often something more: marital property that can be divided between spouses. Virginia courts have treated stock options and grants as a form of deferred compensation under Va. Code § 20-107.3(G). That means a portion of your equity can belong to the marital estate, even if it has not paid out yet.
The five questions that decide the marital share
Classifying a single grant is detailed work, and no one fact settles it. Courts look at five things together:
- When were they granted? A grant made during the marriage points toward marital.
- When do they vest? Vesting after separation does not automatically make a grant separate.
- When do they become exercisable? The timing affects both value and classification.
- What restrictions apply? Conditions on the grant shape what it is really worth.
- What were they for? Past work, future work, or signing on all read differently.
The answers decide how much of a grant is marital, how much is separate, and how it should be split.
A Word About Unvested Shares
Unvested options and RSUs are easy to overlook, and that mistake can be expensive. A grant that vests after you separate can still be partly marital if it was earned for work done during the marriage. The reverse is true too, so the right answer depends on the grant documents, not on a rule of thumb. Pull every grant agreement before anyone agrees to a number.
Not sure how much of your equity is marital?
A short conversation can sort the grants and show you the likely marital share. No pressure, no commitment.
Valuing and dividing what is marital
Equity is harder to value than a bank account because its worth can swing with the market and depend on future vesting. Once the marital share is set, there are a few common ways to divide it: split the shares or their after-tax value as they vest, hand one spouse the equity and offset it with other assets of equal value, or build the division into the settlement so each grant is handled as it pays out. The right method depends on the company, the plan rules, and what each of you needs. For the wider picture of dividing complex assets, see our asset division practice area page.
Where a Herndon case is heard
Herndon sits inside Fairfax County, so a Herndon divorce and the division of your equity are handled by the Fairfax Circuit Court, the 19th Judicial Circuit, at 4110 Chain Bridge Road in the City of Fairfax. The same Virginia law on deferred compensation applies there as in every other circuit court.
“The biggest mistake I see is treating unvested stock as if it does not exist. It is often the largest asset in the marriage, and walking away from it can cost more than the house.”
Alisa Chunephisal, Esq. · Founding Partner
Alisa’s Practical Advice
Three steps protect your share of equity pay. First, gather every grant agreement and the most recent vesting schedule, because the documents, not memory, decide what is marital. Second, do not agree to trade away stock for cash until someone has valued it properly, since the after-tax value can be very different from the headline number. Third, write the division so it spells out exactly what happens at each future vesting date, because vague language here leads straight back to court.
The grant paperwork is worth more than any estimate. Find it first.
Authoritative References
Sources
- Code of Virginia, § 20-107.3. Equitable distribution, including subsection (G) on pensions, profit-sharing, and deferred compensation plans. law.lis.virginia.gov/vacode/title20
- Dietz v. Dietz, 17 Va. App. 203 (1993). Virginia treatment of stock options and grants as a form of deferred compensation.
- Schuman v. Schuman, 282 Va. 443 (2011). Further Virginia guidance on dividing deferred and equity compensation.
- Fairfax County Circuit Court. Hears divorce and property division for Fairfax County residents, including Herndon. fairfaxcounty.gov/circuit
Statutory and case authority verified against current Virginia law as of June 2026. Classifying a specific grant depends on its own documents.
Frequently Asked Questions
Are stock options and RSUs divided in a Virginia divorce?
They can be. Virginia courts have treated stock options and grants as a form of deferred compensation under Va. Code § 20-107.3(G), which means a portion can be marital property subject to division. How much is marital depends on when the grant was made, when it vests, and what it was awarded for. Equity pay is often the single largest asset in a Herndon divorce.
Are unvested shares marital property?
Sometimes. A grant that vests after the date of separation can still be partly marital if it was earned for work performed during the marriage. The opposite can also be true. Because the answer turns on the grant documents and the reason for the award rather than a simple rule, unvested equity should be reviewed carefully before any settlement.
How are stock options actually divided?
Common methods include splitting the shares or their after-tax value as they vest, awarding the equity to one spouse and offsetting it with other assets of equal value, or building the division into the settlement so each grant is handled when it pays out. The right approach depends on the company’s plan rules and what each spouse needs.
How do I prove what is separate?
With the paperwork. Grant agreements, vesting schedules, and award letters show when each grant was made and why, which is what determines the marital and separate shares. The burden is generally on the spouse claiming a portion is separate, so keeping and producing those documents matters.
Where is a Herndon divorce heard?
Herndon is part of Fairfax County, so a Herndon divorce is handled by the Fairfax Circuit Court, the 19th Judicial Circuit, at 4110 Chain Bridge Road in the City of Fairfax. The same Virginia equitable distribution and deferred compensation rules apply there as in every other circuit court in the Commonwealth.
When You Are Ready
Let’s value your equity before you divide it.
Bring me your grant agreements and vesting schedules, and I will help you see what is marital and what your share is really worth. The first call is a conversation, not a commitment.