One of the companies I am invested in is doing a secondary, allowing everyone to sell their common stock at a fixed price to inside buyers. For many, this is an excellent opportunity to cash out early. I have preferred, and common stock in the company and am selling my common. That common was given to me in options for my work with the company.
To complete the documents, at least in New York State, my spouse has to sign the paperwork even though my spouse had absolutely zero to do with those shares being granted to me. The reason is to mitigate risk for a spouse (or ex-spouse) who may attempt to assert an interest in those shares and interfere with the terms that might cause the company damage.
I am not sure when this law was made, but I find it offensive personally. Having been through my parent’s divorce, which was not pretty, I understand the need for transparency on all assets. Why should I ask my spouse to sign documents that he had nothing to do with? Isn’t it up to us to decide how we use that cash in our relationship?
If anything, it is protecting the companies for not getting pulled into a court of law in a divorce case of an employee. There are so many laws on our books that don’t make sense, but it would be a significant event for someone to change the laws.
As much as it pisses me off, I had Fred sign the consent for options, but it still just pisses me off.