§5.03 Stock Options

You have broad discretion to select an equitable method of allocating community and separate property interests in stock options that are granted before the date of separation but are exercisable after separation. [Marriage of Hug (1984) 154 CA3d 780, 782, 793.] These are sometimes called "intermediate" options.

The character of stock options as separate or community depends on when they were issued and whether they were issued as compensation for future services, for past services, or for both. [Marriage of Hug, supra, 154 CA3d at 784, 786; see §§5.04–5.05.]