
Episode 150 | RSU's: $2 Million Now or $8 Million later....perhaps | Guy Rodgers
Holly Draper welcomes back Guy Rodgers, a board-certified family lawyer who shifted his practice in 2008 from full-time litigation to financial advisory work focused almost entirely on divorce litigation support. Holly invited Guy back because even experienced attorneys struggle when a case involves restricted stock units, or RSUs. Guy frames the conversation around the case behind his CLE presentation, “The $14 Million Illusion”: a client who saw $14 million in unvested RSUs on her executive husband’s statements — some tranches vesting as far as 25 years out — and counted on her share as her retirement. Guy explains what RSUs actually are and how they differ from stock options and employee stock purchase plans. He walks through the life cycle of a grant, from the corporate decision to award deferred compensation, through the vesting period he compares to a cake “baking in the oven,” to the moment the shares vest and become taxable. He describes the “waterfall effect” of annual grants vesting on overlapping schedules, and why RSUs are true golden handcuffs that can vanish entirely through death, termination, resignation, or a company’s collapse. The conversation then turns to the practical work: what to request in discovery, including summary plan descriptions, grant letters, vesting schedules, and third-party administrator statements; how to watch for vested shares quietly moved into undisclosed brokerage accounts; and how Texas Family Code § 3.007 and the Berry formula apply to characterizing RSUs month by month. Holly and Guy walk through a visual example showing how to calculate separate and community portions when the marriage covers only part of a vesting period. Guy closes with valuation and settlement strategy, using the time value of money to explain why he advised his client that $2 million today was worth more than $7 or $8 million in contingent future payouts. He covers how to frame the argument on both sides, why trading RSUs for other assets is almost always better than dividing them, and what decrees must include when there is no other option — clear after-tax language, firm delivery deadlines, and security for payment. He also reveals the surprising ending to the $14 million case, and the one question he now always asks the employee spouse. In This Episode, You’ll Discover: • What an RSU really is • How the RSU life cycle works • The “waterfall effect” of annual grants • Exactly what to request in discovery • How RSUs can disappear • How to characterize RSUs under Texas law • Why face value isn’t present value • Settlement strategies on both sides • Drafting for enforceability • The surprise ending to the $14 million case













