Stock Options


#1

Dear crybaby:

Greetings. I believe you are talking about stock options. This is a great question, and I will tell you that it depends. If the stock option is part of an ongoing vesting cycle where a spouse gets stock options regularly as income, then it may be treated as income if it is a stock that typically performs well. All sources of income are looked at for child support purposes.

Now, if the stock options are underwater, they have no value until they are exercised, so I would argue that they are income in the year they are exercised.

Finally, if the stock options are divided under equitable distribution, can they later be used as income for child support? Now, that is a great question…one I would have to look up because I don’t know the answer to right now.

But to answer your question, a stock option which is underwater (has a strike price more than the current stock price) is generally worthless, so not counted as income for child support. Thank you.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#2

Thank You. You are wonderful.


#3

Wow. I will answer your posts anytime! LOL [:)][:D]

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#4

I was reading your on your site about the above subject and I don’t fully understand or I have a question…
If the option to buy is at a higher price then the vesting date-is it considered in child support or in equitable distribution? Presently, if it is worth nothing because the optiion to buy is higher, will the court consider it as income in any form? Example: Present stock price is selling at $30.00 per share and option to buy is $53.00 per share.