Stock options have become an increasingly common divorce issue in California since many employees receive stock options as part of their compensation packages. Not only may stock options be deemed community property, but future stock options may be taken into consideration for child support and spousal support calculations.

It is important to understand the different methods utilized by the court to value stock options, as the valuation method presented could dramatically affect the community's interest.

One method back dates the community's interest to the employee spouse's date of employment. A more common method values the community's interest on the date the stock options were granted by the employer. (The former method will give the community a much greater piece of the stock options than the latter.) And just because a stock option hasn't vested doesn't mean the community has no share.