Calculating child support to include exercised stock options


#1

My ex and I equally divided stock and stock options in the private company he works for when we separated. Since our legal separation date and divorce, he has received more stock options in the company on two separate occasions.

The company is now being sold and we will receive a payout on the stock and stock options (he will receive a subtantially larger amount than I will because of the options he has received since we separated). My ex is stating that he doesn’t think the proceeds from this event should be included in our child support calculations.

I disagree based on what I have read on this site and other sites, as these options are deferred income, and capital gains can be included as income for child support. But I did see that one case, Yost v. Unanue, 109 Ohio App. 3d 294, 671 N.E.2d 1372 (1996) (exercise of stock options was not income because it was a one-time event), the options were not included in the CS calculations.

Would the “one-time event” situation apply in our situation?


#2

Exercised stock options are considered income for child support calculations in NC.This would be a one-time payment, so the best way to determine how to factor this into your child support calculations is to pro-rate the amount he received over 12 months. Add that amount on to his existing monthly income, and that would be the figure for you to use.