Employee Stock Option Valuation -
Proper Valuation is Critical in Divorce Proceedings
Employee stock options can represent the majority of wealth for a family. If these important assets are not properly valued in a divorce proceeding, then there will not be a proper distribution of wealth to each spouse in the divorce settlement. How do you make sure that you are getting your fair share of that wealth? The divorce valuation is crucial to success. Use our option valuation services to find the fair value of the options. Don't let yourself get shortchanged in the divorce settlement. If you make the mistake of assuming that the assets will be distributed equitably, you may find yourself taken advantage of.
Why Stock Option Valuation is So Important in a Divorce Case
- Stock options granted to one spouse may represent a significant portion of the marital wealth.
- The other spouse may not realize or understand the true value of those options.
- Options are worth much more than most people realize.
- Courts do not have established standards and reliable procedures for valuing stock options.
What is an Employee Option?
Companies grant options to employees as incentives, hiring bonuses, rewards, and as compensation for their work. An Employee Option grants the owner the right, but not the obligation, to purchase stock in the company at a specified price, called the strike price, on or before the expiration date of the option. Employee options are often granted for long periods, such as ten years.
What is the Future Payoff of an Option?
An option's future payoff depends on the future stock price, which is uncertain. If the market price of the underlying stock goes above the strike price, the option holder can exercise the option by purchasing the stock at the lower strike price and then selling that stock at the market price, thus realizing a profit equal to the market price minus the strike price. However if the option expires with the market price of the underlying stock below the strike price, then the option is not worth anything at expiration. But during the term of the option, even if the market price is below the strike price, the option does have value and in many cases this value can be very significant. It is easy to understand that options can have value even if the market price is below the strike price because there is the probability that the price of the stock will rise above the strike price before the option expires.
How do You Determine Fair Value for Options?
Our option valuation methods use Nobel-Prize Winning formulas that have been well proven in the marketplace to determine fair value for options. The Financial Accounting Standards Board (FASB) requires companies to expense their options properly at fair value. We use all of the factors that they recommend for determining fair value: the exercise price of the option, the expected term of the option, the current expected dividends on the underlying share, and the risk-free interest rate. In fact MindXpansion also provides our option valuation services to other companies so that they can properly expense the options they grant. If you are interested in our services for proper expensing of company options to meet the requirements of the FASB, please visit our website for expensing company options.
We provide employee stock option valuation services to family law attorneys for litigation of their divorce cases so that they can protect their clients' property rights. We also provide our services directly to people going through a divorce so that they can understand the true value of employee options held by them or their spouse and to provide data to their attorneys for proper protection of their interests in these important marital assets. We use several different option valuation models, such as the Nobel Prize winning Black-Scholes option pricing model or lattice binomial models, depending on the needs of the customer.
Our option valuation services are attractively priced and easy to use. We offer the lowest prices in the industry. Customer satisfaction is our highest priority.
Services to Meet Your Needs
We can make market fair value calculations for both public and private companies. Standard services that should meet your needs are listed below. Contact us for any specific requirements you have that are not listed here, so that we can customize our services to meet your specific needs.
Service 1 (Valuation): We Calculate Fair Value for Your Options
We will calculate fair value for your options, using all of the factors that are stipulated by the FASB: the exercise price of the option, the expected term of the option, the current expected dividends on the underlying share, and the risk-free interest rate. We use several different option valuation models, such as the Nobel Prize winning Black-Scholes option pricing model or lattice models, depending on the needs of the customer. Order Service 1 to determine the fair value of your options. If these options were sold in an open market, "fair value" is the price that would be fair to both the buyer and the seller at the time of valuation.
Order Service 1 today!
If you would like more information on what Service 1 can do for you, please see the benefits of Service 1. If you have any questions about this service, look through Frequently Asked Questions for Service 1. If your question is not answered there, please email support@mindxpansion.com so that we can answer it for you.
We use several different option valuation models, such as the Nobel Prize winning Black-Scholes option pricing model or lattice models, depending on the needs of the customer.
$75 plus $15 per option group* analyzed.
*An option group refers to a set of options with the same option parameters (grant date, expiration date, strike price, etc.)
Don't delay. Order Service 1 to determine fair value of the options held by your family.
Service 2 (What-If): Do What-If Analyses
We can do what-if analyses if you would like to see how option fair value is affected by different assumptions for the term of the option, option volatility, dividend rates, or other parameters of interest to you. Order Service 2 to gain insight in factors that affect valuation.
If you would like more information on what Service 2 can do for you, please see the benefits of Service 2. If you have any questions about this service, look through Frequently Asked Questions for Service 2. If your question is not answered there, please email support@mindxpansion.com so that we can answer it for you.
We use several different option valuation models, such as the Nobel Prize winning Black-Scholes option pricing model or lattice binomial models, depending on the needs of the customer.
$75 plus $15 per option group* analyzed.
Don't delay. Order Service 2 to better understand employee options and the factors that affect their fair value.
Service 3 (Volatility Analyses): Calculation of Historical Volatility
We can perform volatility analyses on the underlying stock to help project future expected volatility for the company, if you do not know the future expected volatility.
$50
Don't delay. Order Service 3 to analyze historical volatility for the company to project future expected volatility.
Service 4 (Papers): Special Papers to Support Your Case
We can prepare special papers to help support your case. Let us know specific arguments that your opposing attorney is making so that we can prepare a special paper to refute the argument. Alternately if there are some aspects of option valuation that you would like to better understand, we can prepare a paper to elucidate the matter. When you understand your case better, you are in a better position to help your lawyer with your case. Special papers can generally be prepared for $100.
$100
Don't delay. Order Service 4 to have a special paper developed to inform you and support your case.
Order Today!
Evaluate Your Employee Options for Fair Distribution of Marital Assets
Use our stock option valuation services to ensure that you get your proper share of marital wealth!
Order Our Service Today! No complicated programs to learn.
We do all of the work and provide simple answers for you to use.
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