Engineer Divorce in Dedham, MA – All You Need To Know

Engineers tend to have elaborate financial situations, with assets like stock options, patents, and other intellectual property, as well as businesses requiring a more careful assessment before dividing them.

Without careful planning, much of what’s at stake could wind up where you didn’t intend it to — with your spouse. If you’re facing a divorce in Dedham, MA, as an engineer or the spouse of one, here’s what you need to know to protect yourself.

Equitable Division in an Engineer Divorce in Dedham, MA

In Massachusetts, asset division is based on what’s fair. Fair, however, may not necessarily mean equal. A Dedham, MA, court will consider several factors when deciding: how many years the couple was married, each spouse’s contributions to the marriage, and both spouses’ future needs, among other factors.

Just because an asset was acquired during the marriage won’t automatically mean it will be split 50/50. The same holds for an asset acquired before the marriage; it won’t automatically be considered separate property.

Consider the following: If you have been married for a long time and your spouse and you contributed financially and non-financially to the marriage, the court might favor a more equal division. However, if one spouse made more significant financial or personal contributions, they may receive a larger share of the assets to compensate them for those contributions.

When an engineer divorces, more than the typical assets, such as the marital home or savings, are often involved. Engineers frequently receive stock options, RSUs (restricted stock units), and bonuses in addition to their salary as part of their compensation structure.

These kinds of assets can require a deeper look to value them accurately, especially if the assets have the capacity to change in value over time. This would be typical of assets that depend on the company’s performance where the engineer is employed. For example, stock options that vest may not be available for immediate sale, and their actual value might not be realized for years.

In addition to financial compensation, engineers may have ownership rights to intellectual property, patents, or proprietary technology they’ve developed. These assets are often the most complicated to divide because their value can extend far beyond the divorce itself.

For example, a patent could provide long-term income potential, so understanding how to value and divide these assets equitably becomes critical. A forensic accountant may need to be part of the divorce team involving an engineer to provide insight into cases involving less easily valued assets.

Business Ownership in a Dedham, MA, Engineer Divorce

If you or your spouse own a business, regardless of whether that business is a startup or a well-established company, it will need to be valued as part of the divorce.

Business value can go far beyond the financials and encompass real estate, equipment, stock shares, and intellectual property, among other holdings. These factors must all be considered to understand the business’s worth accurately.

Once a business valuation expert values the business, you may have several choices regarding its disposition in the divorce.

They are to:

Buy out your spouse’s share.

If you are intending to retain control of the business, you may choose to buy out your spouse’s share. This can work if you have the financial means to make this happen. Regardless, the buyout must be fair and equitable in light of the rest of the equitable distribution.

Offset ownership with other assets.

If you don’t want to sell the business and divide the proceeds with your spouse or buy out your spouse’s share, you could offer them other assets, such as real estate, retirement accounts, or other investments, to offset their business interest.

Continue to co-own the business after divorce.

The most risky proposition of the three options is to remain a co-owner with your spouse after divorce. Doing so can be challenging on many levels, especially if you or your ex have lingering personal issues you are managing. If you choose this option, it’s wise to explicitly agree in writing about how the business will be run moving forward. This is generally not recommended.

Working with an experienced family law attorney who understands the nuances of business valuation and equitable division during a Dedham, MA, engineer divorce is helpful in any of the above situations. The last thing you want is your business or intellectual property to be undervalued or mishandled.

Tax Implications in a Dedham, MA, Engineer Divorce

Here are a few ways in which taxes can impact a Dedham, MA, engineer divorce:

Stock Options

Stock options, such as Incentive Stock Options (ISOs) and Non-qualified Stock Options (NSOs), are likewise subject to being taxed. If you have stock options, working with a financial expert to account for them during your divorce to avoid surprises later is wise. Your Dedham, MA, family law attorney can add a tax professional to your team.

Retirement Accounts

Dividing retirement accounts like 401(k)s or IRAs often requires a special court order called a Qualified Domestic Relations Order (QDRO). The QDRO allows a portion of retirement assets to be transferred to the non-plan owner without them incurring taxes or penalties for early withdrawal.

Capital Gains

When assets are sold or transferred in a divorce, they may be subject to a tax called capital gains. According to the IRS, capital gains are “the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss.”

Getting a solid grasp on how you might incur these taxes as a result of a divorce, even inadvertently, and how to offset them is paramount for avoiding unexpected financial consequences. A tax professional familiar with divorce can help.

Alimony

In light of tax changes from a few years ago, alimony is no longer deductible to the payer or taxable to the recipient under current tax laws (as of 2025). However, alimony can still affect finances, so you will want to understand how alimony may figure into your financial future. Working with a financial planner can help.

Find a Dedham, MA, family law attorney for a divorce involving an engineer.

Divorce is a big decision. It can also be stressful, making it tempting to rush through the process to get it over with fast. However, that’s not often the best idea.

In a divorce involving an engineer, carefully analyzing both spouses’ current positions will be necessary if the goal is to achieve financial health for each. With competent legal and financial guidance by your side, you can reach a settlement that allows you to move forward into the future with an understanding of your financial picture.

At Farias Family Law, our skilled and experienced divorce attorneys understand the legal and financial nuances of divorces involving an engineer. Whether you’re an engineer or married to one, we can help you move through the process to emerge with your financial future not only intact but bright. Call our office today.