CALIFORNIA FAMILY LAW
...Child Support
......Amount
.........Financial Ability
............Stock Options
5 Cards On This Topic:

FC §4058 includes all compensation conferred upon and available to the employee, including stock options when all impediments to sale are removed; parent's investment preferences cannot affect "income" for purposes of c/s.

How to treat subsequent income from stock options after it has been considered under a "vest and mature" rule.

Court must consider income from all sources when making child support order, including income derived from sale of stock received from exercise of options; children entitled to share in parent’s wealth.

Award of % of future exercise of stock options impermissible; % award based on realized income from exercise of options permissible, if court sets max. amount that would not exceed Cs’ needs.

Unexercised stock option appreciation, given by employer as part of executive compensation package, should be included in recipient's "gross income" for child support calculation.