Ellen Winick Stross

SAN MATEO - Ellen Winick Stross specializes in untangling and evaluating the complex financial structures used to compensate Silicon Valley executives and entrepreneurs, such as equity compensation and carried interest.

"Disputes over the character of complex compensation structures is the focus of my practice," she said. "I love the fact that it's always new and evolving."

Part of the challenge and the fun for her is that there are no published appellate decisions in California setting out definitively how to determine whether compensation such as carried interest or restricted stock units should be characterized as separate or community property and how to apportion them between divorcing spouses.

"The caselaw in California has not really developed as quickly as it could or should have in these areas, and that makes it a challenge," she said. "You need to be flexible and creative in your approach."

Because the law is unsettled, cases can be difficult to settle. But there are no definitive appellate decisions on the topics because she and other attorneys who represent CEOs, venture capitalists and founders always strive to settle their cases.

"Our goal is not to make new law in a particular area," Stross said. "Our victory is to help people through a process that they thought they'd never have to go through and now they find themselves in."

To help in the meantime, Stross has developed an approach to characterizing and apportioning carried interest, which is the unusual compensation method used by investment executives like venture capital, private equity and hedge fund managers.

She describes her approach as a timeline apportionment methodology, and she has talked about it with colleagues frequently and lectured about it to the area chapter of the American Academy of Matrimonial Lawyers.

"At some point in the future, I predict we'll get a Court of Appeals ruling on the characterization of carried interest. ... But until then, it's the wild west."

Stross served as the president of the Northern California chapter of the American Academy of Matrimonial Lawyers in 2017- 18 and of the local chapter of NARAL Leadership Council last year.

"In my mind, families are worse off when women don't have reproductive rights and autonomy over their bodies," she said.

She sees those activities as being well in line with her work as an attorney. In addition to financial issues, she also handles custody, support and other divorce-related matters.

Back in 2008, Stross wrote an article for the Association of Certified Family Law Specialists newsletter providing advice for women who want to become single autonomous birth mothers. It was called "Murphy Brown vs. Mary Poppins, Mike Brady and a Known Donor."

Like her professional and volunteer work, "it's all in service of families and all of their wonderful differences," she said.

- DON DEBENEDICTIS