Legal Question in Family Law in Idaho
Stock option split in community property state
If one person in the marriage has been awarded stock options as part of pay or bonuses, are those options to be (or the value thereof) divided as community property in divorce settlement?
1 Answer from Attorneys
Re: Stock option split in community property state
As a general rule, any earnings (wages, salary, bonuses)
which come in during the marriage are considered community property.
In some states that does not always hold true. For example, in Washington,
income that comes from separate property (rent received from rental units which are
separate property) remains separate property. In Idaho, however, even income from
separate property is community property. Therefore, it seems that under the facts you
have presented, that the stock comes as compensation for employment. In that scenario,
the stock would be community property to be divide according to community property laws, which also vary from
state to state.
I hope that helps. Best of luck, and if you need additional information, don't hesitate to contact me.