Quick answer: In a Florida divorce, RSUs granted for work performed during the marriage are generally marital property subject to equitable distribution, even if they vest later. They are taxed as ordinary W-2 income when they vest, and in 2026 employers withhold only a flat 22% federal — often far less than what is actually owed. Valuing, dividing, and tax-adjusting RSUs correctly can change a settlement by tens of thousands of dollars.
2026 RSU numbers at a glance
Item | 2026 figure |
Federal supplemental withholding on RSU vests | 22% flat (37% on amounts over $1 million) — IRS Pub. 15 |
Top federal bracket (37%) begins | $640,600 single / $768,600 married filing jointly |
24% bracket begins (where under-withholding starts) | $105,700 single (taxable income) |
Social Security wage base | $184,500 (6.2% up to the cap) |
Additional Medicare tax (0.9%) begins | $200,000 single / $250,000 joint |
Long-term capital gains rates | 0% / 15% / 20%, plus 3.8% NIIT for high earners |
Florida state income tax on RSU income | 0% |
What RSUs are — and why they complicate a divorce
Restricted Stock Units are a promise from an employer to deliver company shares on a future date, provided vesting conditions are met — usually continued employment, sometimes performance targets. Until they vest, the employee owns nothing they can sell or transfer. That gap between “granted” and “owned” is exactly where divorce disputes live: the shares may not exist yet as property, but the right to them was often earned during the marriage.
Are RSUs marital property in Florida?
Florida divides marital property under equitable distribution — a fair division, which is not automatically an equal one. For RSUs, the controlling questions are when the units were granted and what they were granted for:
- Granted during the marriage as compensation for work already performed → generally marital.
- Granted after the cutoff date for identifying marital assets, or granted specifically to compensate future, post-marriage work → generally non-marital.
- Granted during the marriage but vesting after it → usually partly marital, which is where a coverture calculation comes in.
The grant agreement matters enormously. A “retention” grant intended to keep an employee for the next four years is a different animal from a grant rewarding last year’s performance, even if the paperwork looks similar.
Valuing the marital portion: the coverture (Hunt) fraction
The most common tool for splitting a grant that straddles the marriage is a time-based coverture fraction, often called the Hunt formula after the case that popularized it:
Marital portion = (months from grant date to marriage cutoff date) ÷ (months from grant date to vesting date)
Worked example (2026): 1,000 RSUs granted January 2023, vesting January 2027. The petition establishes a January 2026 cutoff. The marriage covered 36 of the 48 months between grant and vest, so 75% of the grant — 750 units — is marital. At a $200 share price, that is $150,000 of marital value from a $200,000 grant.
Florida courts have not formally adopted the Hunt formula, but it is widely used as a negotiating framework in settlements and mediation. Each vesting tranche gets its own fraction, so a four-year grant with annual vesting produces four different marital percentages.
How RSUs are taxed in 2026
RSUs are taxed at two separate moments, under two separate rules.
At vesting: ordinary income. The full fair market value of the shares on the vest date is added to W-2 wages — whether or not the shares are sold. It is taxed at the employee’s marginal federal rate (10%–37% in 2026), plus Social Security up to the $184,500 wage base, Medicare at 1.45% with no cap, and the 0.9% Additional Medicare tax above $200,000.
The withholding trap. Employers are required to withhold federal tax on RSU income at the flat supplemental rate — 22% in 2026 (37% only above $1 million). That is a deposit, not the actual tax. Anyone whose total income lands in the 24% bracket or higher is under-withheld on every vested dollar:
RSU vest | Withheld at 22% | Actually owed at 32% | Actually owed at 35% | Shortfall at 35% |
$100,000 | $22,000 | $32,000 | $35,000 | $13,000 |
$250,000 | $55,000 | $80,000 | $87,500 | $32,500 |
In a divorce, this matters twice: the spouse receiving value tied to RSUs may inherit a tax bill nobody priced into the settlement, and a support calculation built on gross vest values overstates what is actually available.
After vesting: capital gains. The cost basis equals the vest-date value already taxed as income. Appreciation after vesting is capital gain — long-term rates of 0%, 15%, or 20% (plus 3.8% net investment income tax for high earners) if held more than a year past vesting; ordinary rates if sold sooner. One recurring filing error: brokers often report a $0 cost basis on the 1099-B, which double-taxes the vest value unless corrected.
The Florida advantage — with an asterisk. Florida has no state income tax. But if the RSUs were earned while working in a state like California or New York, those states can tax the portion of the vest allocated to workdays there — even years after moving to Orlando. Multi-state vesting histories deserve a careful look before settlement values are finalized.
Three ways to divide RSUs in a settlement
- Transfer vested shares. Transfers of vested stock between spouses incident to divorce are non-taxable under IRC §1041, and the receiving spouse takes the vest-date cost basis. Clean, but only works for shares that have already vested.
- “If, as, and when” division. Unvested RSUs usually cannot be transferred — the plan won’t allow it. Instead, the employee spouse holds the units and delivers the agreed share of each tranche as it vests, net of taxes at the employee’s actual marginal rate. The settlement language must specify whose tax rate applies and how it is calculated, or this becomes a fight every vesting date.
- Offset with other assets. The non-employee spouse keeps more of another asset — home equity, a retirement account — equal to the marital RSU value, tax-adjusted. This requires an honest after-tax valuation: $150,000 of unvested RSUs taxed at 35% is not worth $150,000 of Roth IRA.
RSUs, alimony, and Florida’s 35% cap
RSU vests count as income, and under Florida’s reformed alimony statute (SB 1416), alimony is capped at the lesser of the recipient’s need or 35% of the difference between the spouses’ net incomes. Large or lumpy vesting years can swing that income difference dramatically, so how vests are averaged — and whether the same dollars are counted once as an asset and again as income (“double dipping”) — belongs in the negotiation, not as an afterthought.
Frequently asked questions
Are unvested RSUs marital property in Florida? Often partly. If the grant compensates work performed during the marriage, the marital share is typically calculated with a coverture fraction, even though vesting happens after the divorce.
How are RSUs valued for a divorce settlement? Vested shares are valued at market price. Unvested units are usually valued tranche by tranche using a coverture fraction, then discounted for taxes and, where appropriate, for forfeiture risk if the employee might leave before vesting.
Who pays the taxes when RSUs are divided? The employee spouse is taxed at vesting no matter who ultimately receives the value. A well-drafted agreement transfers shares (or cash) net of tax at a defined rate so the burden matches the benefit.
Can my spouse’s employer just split the RSUs between us? Almost never. Most plans prohibit transferring unvested units, which is why settlements use “if, as, and when” language or asset offsets instead.
Is a transfer of vested shares to my ex taxable? No. Transfers between spouses incident to divorce are non-taxable under IRC §1041; the recipient takes over the existing cost basis and holding period.
Do RSUs count as income for alimony and child support? Yes — vested RSU value is compensation and is generally included in income for support purposes, though how recurring or one-time grants are treated can be negotiated.
Conclusion
RSUs on the table in your divorce? The CDFA® team at Orlando Divorce Planning models the after-tax value of every settlement scenario — including vesting schedules, withholding gaps, and support interactions — so you negotiate with real numbers.
Contact us today to schedule a consultation. Together, we’ll build a clear strategy that protects your interests and sets you up for financial security post-divorce. Don’t leave your future to chance—let’s get started.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Every case is unique. Always consult a licensed family law attorney and qualified financial professional before making decisions about asset discovery or division.
Sources
- IRS Publication 15 (Circular E), 2026 — supplemental wage withholding rates
- IRS Rev. Proc. 2025-32 — 2026 tax brackets and standard deduction
- IRS Publication 525 — taxable compensation, including RSUs
- IRC §83(a); IRC §1041
- Stat. §61.075 (equitable distribution); Fla. Stat. §61.08 (alimony, as amended by SB 1416)