Divorcing in Salt Lake City?
Tech Equity, Business Interests, Real Estate — Do You Know What's Marital Property?

Qualtrics RSUs: The $8 Billion Question

Qualtrics employees received massive windfalls when SAP acquired the company in 2018 for $8 billion—but many still have unvested RSUs that complicate divorce.

Qualtrics equity divorce considerations:

• SAP RSUs: Many Qualtrics employees received SAP stock (German company, ADR on NYSE)
• Vesting schedules: What happens to unvested RSUs granted during marriage at divorce?
• Tax complexity: RSUs are taxed as ordinary income when vested (federal + Utah 4.65%)
• Marital vs. separate: RSUs granted before marriage but vesting during—how to divide?
• Retention awards: Post-acquisition retention bonuses and equity—are these marital?

Real scenario: Let's say your spouse works at Qualtrics and has $400K in unvested SAP RSUs. They were granted during your 20-year marriage. At divorce, how much of that unvested equity is marital property? What if they leave Qualtrics before vesting—do they forfeit the unvested shares? This requires expert analysis to ensure fair division.

Adobe Lehi Campus: Publicly-Traded Tech Equity

Adobe's Lehi campus is a major employer with thousands of tech workers receiving stock options and RSUs from a publicly-traded company (NASDAQ: ADBE).

Adobe equity considerations:

• Stock options (ISOs and NSOs): Right to buy Adobe stock at a set price
• RSUs (Restricted Stock Units): Adobe shares granted on a vesting schedule
• Employee Stock Purchase Plan (ESPP): Discounted stock purchases
• Performance shares: Equity tied to company/individual performance goals

Tax implications:

• ISOs (Incentive Stock Options): Can trigger AMT (Alternative Minimum Tax) when exercised
• NSOs (Non-Qualified Stock Options): Taxed as ordinary income when exercised
• RSUs: Taxed as ordinary income when vested (even if you don't sell)
• Capital gains: When you sell Adobe stock, long-term vs. short-term gains matter

For those new to finances: Stock options and RSUs are complicated. Exercising them incorrectly can trigger massive tax bills. Dividing them in divorce requires understanding vesting, exercise timing, AMT, and long-term capital gains strategies.

Startup Equity: Valuing the Unknown

Beyond the big names, Salt Lake/Wasatch Front is packed with startups—and startup equity is notoriously difficult to value in divorce.

Startup equity valuation challenges:

• No public market: Unlike Adobe or SAP, startup stock doesn't trade publicly
• Uncertain value: Is the startup worth $10M or $100M? Or will it fail entirely?
• Liquidation preferences: Even if the startup sells, employees may get nothing after investors are paid
• Vesting cliffs: Many startups have 1-year cliffs before any equity vests
• Illiquid: You typically can't sell startup stock until IPO or acquisition

Divorce approaches:

• "If/when" division: Spouse keeps startup equity, but agrees to pay a % IF it ever has value
• Offset method: Award other marital assets to compensate for startup equity spouse keeps
• Expert valuation: Hire business valuator to estimate current fair market value

This is where financial planning expertise matters. An attorney can tell you the equity is marital—but a CDFA® can help structure a division that's actually fair given the uncertainty.

Dual-Income Tech Couples: Both Spouses with Equity

Many Silicon Slopes gray divorce cases involve BOTH spouses working in tech with equity compensation. This creates unique complexity.

Scenario: Wife works at Adobe (RSUs), Husband works at Domo (stock options). Both have substantial equity earned during 22-year marriage. How do we divide this fairly?

Considerations:

• Offsetting equity: Can we offset Adobe RSUs against Domo options?
• Risk profiles: Adobe (established) vs. Domo (higher risk)—are they equivalent?
• Vesting timing: Wife's Adobe RSUs vest in 2 years, Husband's Domo options in 4 years
• Tax treatment: ISOs vs. NSOs vs. RSUs have different tax consequences
• Liquidity: Adobe stock can be sold immediately after vesting; Domo may have restrictions

Simply saying "each spouse keeps their own equity" might SEEM fair, but if one spouse has $600K in vested Adobe stock and the other has $600K in unvested startup options, those aren't equivalent. Expert analysis ensures truly equitable division.

Tech Equity Liquidation Strategy

• When to exercise stock options to minimize AMT
• How to sell RSUs to avoid unnecessary taxes
• Diversification: Don't keep all wealth in employer stock
• Tax-loss harvesting opportunities

Housing Decisions

• Draper/Sandy/Cottonwood Heights affordability on single income
• Downsizing to condo or smaller home
• Renting vs. buying in post-divorce life
• Property tax and HOA cost planning

Retirement Security

• 401(k) and IRA rollover strategies
• Social Security claiming optimization
• Healthcare coverage until Medicare (age 65)
• Long-term care planning

Lifestyle Adjustments

• Budgeting for Salt Lake cost of living on single income
• Ski pass budgets (Epic/Ikon passes $600-$1,000+/year)
• Healthcare premiums (COBRA or ACA marketplace)
• Emergency fund building