The court rejected the payor s argument that the options are nonrecurring, as they were granted to him annually. Therefore, the court found that the options, once they may be exercised, are to be included in the payor's gross income for the purpose of calculating child support. In re Marriage of Campbell . Analyzing stock options under Colorado's child support law, the court held that proceeds received for the exercise of stock options were income for child support purposes. Certainly, under HSS 80, stock options must be considered for child support.
Stock options fit that definition.
However, it is not that simple. Stock options typically have, following vesting, an exercise period after which the option terminates. No taxes are due until the option is exercised. Similarly, to charge child support when exercised, as done by the Ohio and Colorado courts, may not be appropriate, as the exercise periods may be lengthy. So a payor, knowing that the exercise could trigger a significant child support payment would likely wait, if possible, until child support terminated before exercising the option.