Legal Question in Family Law in California

Marriage Separate Property

I got stock options from my current employer before getting married.

However, the stock options will vest in the future during my marriage.

Are this stock options community property? If so, is there any way to

keep the stock options as a separate property?


Asked on 2/01/00, 10:56 pm

2 Answers from Attorneys

Michael Gray Barber & Gray, LLP

Re: Marriage Separate Property

Great question with a difficult answer. If the stock options were a reward for past services they are separate. If they are an incentive for your continued (future) employment they would be community.

Read more
Answered on 2/02/00, 6:43 pm
Matthew Kremer Law Offices of Matthew M. Kremer

Re: Marriage Separate Property

I essentially agree with Mr. Gray's response. The prime issue is: what kind of options are they and what are the terms of vesting. If they are "golden handcuffs", meaning you have to be employed there on the date they mature, a portion would be community and a portion would be separate. If you have the right to exercise the options on a future date even if you are not employed there, they should be considered separate property.

Since it sounds like you are already married you cannot, obviously, have a premarital agreement to keep the options as separate property no matter what. You can attempt a post-marital agreement, but that is more problematical, not to say a probable downer for your marital relations.

Read more
Answered on 2/03/00, 11:29 am


Related Questions & Answers

More Family Law, Divorce, Child Custody and Adoption questions and answers in California