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Transfer Of Economic Interest
A concept in divorce agreements: the employee spouse transfers to the nonemployee spouse a continued interest in outstanding grants. The nonemployee ex-spouse may then direct the employee ex-spouse on when to exercise stock options and will receive shares at exercise. This approach is used when the company's stock plan does not allow splits of outstanding grants in divorce. Compare this to transfer of economic value. For more on the treatment of stock compensation in divorce, see the section Life Events: Divorce.
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