Employment Taxes and Stock Options
August 30, 2005
More than 2 years ago, the Internal Revenue Service published Revenue Ruling 2002-22, 2002-19 I.R.B. 849, in which it held that section 1041 of the Internal Revenue Code governed the transfer of stock options and interests in certain unfunded deferred compensation arrangements to the employee's spouse under a marital property settlement. As a result, the employee spouse was not taxable on the transfer. Instead, the spread on the options (the difference between the value of the employer 's stock at the time of exercise and the striking price) and the amount received as deferred compensation under unfunded arrangements were taxable to the nonemployee spouse in the same way and to the same extent as it would have been taxed to the employee.
Domestic Violence in the Workplace
July 29, 2005
It seems that we read news stories almost daily about estranged husbands and boyfriends hunting down women at work, and ultimately killing these women before committing suicide. The "spillover" of domestic violence into the workplace is a widespread phenomenon and one that employers must acknowledge and deal with. It is not simply a private family issue. It cannot be minimized or ignored. The workplace is an easy place to find someone, which enables estranged partners to harass, stalk and sometimes kill their victims at work.
Can You Fire an Employee for Blogging?
July 29, 2005
What employees do on their own time is their own business, right? Except when you think it may adversely impact your business. It's one thing for an employee to harbor extreme political views. It's another thing to blog them to the world. An employee's private sex life is, well, private. But what if an employee blogs his or her sexual fantasies to the world? Does an employer have the right to take action against an employee for off-duty blogging it finds offensive or otherwise problematic?
Litigation
July 28, 2005
Recent rulings of importance to you and your practice.
Life Insurance and Divorce
June 28, 2005
Life Insurance is an important matter in most divorces. There are a host of issues that are not addressed in the typical negotiation. Consider the following sample insurance clause from a Property Settlement Agreement [PSA]: "The husband shall maintain life insurance for the wife having an aggregate death benefit of $250,000. Said obligation shall be terminated if the husband's obligation to pay alimony is modified/terminated. The husband shall maintain life insurance having an aggregate death benefit of $250,000 for the benefit of the unemancipated children. Said benefit shall be reduced by $75,000 upon the emancipation of the first child and again upon the emancipation of the second child. The obligation to maintain any life insurance for the children shall terminate upon the emancipation of all Three [3] children." There are many important decisions and considerations not addressed in a simplistic -- and typical -- clause like this, and practitioners need practical recommendations and advice on how better to address life insurance issues. This article provides both.
Retention of Restructuring Professionals
June 27, 2005
Restructuring professionals must be acutely aware of potential conflicts of interest. Indeed, federal courts on occasion have disqualified a professional or ordered the disgorgement of the professional's fees in situations where that professional failed to properly disclose a conflict of interest. The importance of conflicts of interest is especially evident in today's global economy, in which restructuring matters routinely involve many of the same parties.
