In Re The Marriage Of Short

890 P.2d 12 (1995)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

W and H were married in 1978. H worked for DEC and by 1988 supervised 57 employees and made $80,000 salary per year. In 1988, H left DEC and joined the evil empire, Microsoft. H got a $90,000 per year salary and stock options to purchase 25,000 shares of stock for $46 per share. The stock vested over time with 1/4th vesting in 18 months and the rest in equal increments every six months thereafter. H and W separated in 1989 and 1990 H filed for dissolution. The stock split in April 1990 and H now had options to purchase 50,000 shares at $23 per. H sold some of the shares for a $500,000 profit. The court determined that the options were acquired in part during the marriage, after separation, and after the marriage. The court determined that the profits should be split 50-50 between community and separate property. W contended it was error to characterize the majority of the stock options as separate property. The court of appeals agreed and reversed; the stock options were acquired during marriage and that thereafter all the options were community property. This appeal resulted.