§5.05 Options for Future Services

If you find that the stock options are primarily an incentive for future services, the time rule may be based on the date the option was granted, rather than the date of employment. You may apply the following formula [Marriage of Nelson (1986) 177 CA3d 150, 155]:

• The numerator is the number of months from the date of grant of each block of options to the date of the couple's separation, and
• The denominator is the period from the time of each grant to the date when it can be exercised.

If the options are not a vested benefit, the denominator is the time from the grant to the date the option vests. [Marriage of Walker (1989) 216 CA3d 644, 650–651.]