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DeFilipe v. Suwan, 24-P-792 (October 14, 2025)
EQUITABLE DISTRIBUTION OF CLOSELY HELD SECURITIES AND GENERAL TERM ALIMONY
The Massachusetts’s Appeals Court upheld the lower court’s equitable distribution of Nonvoting Common Shares (NVCs), Investor Entity Units (IEUs) and an award of alimony.
The parties married in 2006 and had one minor child together. The Husband filed a Complaint for Divorce (irretrievable breakdown) on September 24, 2020.
Three months after the Husband filed his Complaint for divorce, he became eligible, through his employer, Fidelity, to purchase nonvoting common shares (“NVCs”). The NVCs convey an ownership interest in Fidelity, but not the right to vote on the company’s business decisions. Fidelity only allows small groups of “highly valued” employees to purchase NVCs. The NVCs remain unvested for three years, and they vest at a rate of twenty percent per year, over a period of five years. The Husband purchased 20,000 NVCs (2020 NVCs) around December 2020 and an additional 20,000 in December of 2022.
The Husband was also able to purchase Investor Entity Units (“IEUs”). The IEUs are stocks in companies owned or party owned by Fidelity which are fully vested when issued and can be transferred only to authorized holders or assignees after a low-interest loan from Fidelity is paid. The Husband purchased 575,000 Investor Entity Units (“IEUs”) in 2020 and more in 2022.
The Judgment of Divorce assigned the Wife 50% interest in the 2020 NVCs and 2020 IEUs, as well as a 50% responsibility for the outstanding loan balances to Fidelity...
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