Pensions, Stock Bonuses, and Options Flashcards
1
Q
Pensions, Stock Bonuses, and Options
A
Bonuses are treated as wages, and any such bonuses earned during marriage are presumptively community property. In determining the character of stock bonuses and stock options acquired in part during marriage and in part outside of marriage, the court should apply the pension time rule, in which, to determine the community interest, the total amount of stock is multiplied by a fraction. The numerator is the total number of years of marriage in which stock is earned, and the denominator is the total number of years in which stock is earned. The same rule applies to pensions and other retirement benefits.
