§1.13 Stock Options

If a stock option plan is part of a parent's employee compensation, you may consider it income for determining child support when the option is exercised, i.e., the stock is acquired and then sold. [See Marriage of Cheriton (2001) 92 CA4th 269, 287-288.]

When a spouse received and exercised stock options that improved the marital standard of living and the future grant of options is part of his or her overall compensation package, a support order may be based in part on a percentage of undetermined future stock option income as long as you set a maximum amount proportionate to the marital standard of living. [Marriage of Kerr (1999) 77 CA4th 87, 92, 94-95, 97.]