Arizona decision on dividing stock options

by Annette Burns on August 24, 2005

Arizona finally has a reported decision on the division of stock options which are not entirely vested at the time the Petition for Dissolution is filed.   Thanks to my good friend Steve Serrano for this information.

"We will leave it to the trial court to determine whether the disputed options were incentives for the future, compensation for past performance, or some combination of both.  Once it makes that determination, it can decide which time-rule formula is most appropriate.  The primary factor the trial court should consider is the employer’s intent in awarding the options."

By "which time-rule formula", the decision refers to the Hug and Nelson formulas, out of California.

Attached:  Decision in Brebaugh v. Deane,  1CA-CV 04-0237 (Aug 23, 2005, Div.1)

Download BrebaughStockOptions.pdf

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