Divorce Dex.com: Unvested Interest

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Definition Unvested Interest - refers to, in the case of stock options, the right of an employee to earn options, usually after a period of time with a company.

Application in Divorce The term is also used relative to a trust and means there is no guarantee of present or future value.

Some retirement plans provide for vesting in incremental steps over a period, often 10 years of employment. After 10 years, the employee is said to be fully vested in the plan and has a 100 percent claim on the company contributions to his account. The employee’s unvested interest in the plan is that portion to which he has a claim after he or she has been employed there for a period defined in the vesting schedule.

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