Marriage Hug

201 Cal. Rptr. 676 (1984)

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

Maria (W) and H were married on April 31, 1956, and separated on June 9, 1976. On November 6, 1972, H begin employment at Amdahl. While employed at Amdahl, he was granted options to purchase 3,100 shares of Amdahl's stock. Amdahl granted the first of the disputed options on August 9, 1974, an option to purchase 1,000 shares at $1 per share. The trial court found that this option 'replaced' an earlier option to purchase 1,000 shares at $20 per share which had been awarded on November 22, 1972, just two weeks after H commenced employment at Amdahl. Paul and Amdahl mutually rescinded the 1972 agreement in August of 1974. Amdahl also granted the second option on August 9, 1974, for 1,300 shares at $1 per share. Amdahl granted a third option for 800 shares on September 15, 1975, at $5 per share. Each of the options was exercisable over four years each in yearly increments of 30 percent, 25 percent, 25 percent, and 20 percent. H and W separated in 1976. The trial court found that the stock option plan was adopted 'for the purpose of attracting and retaining the services of selected directors, executives and other key employees and for the purpose of providing an incentive to encourage and stimulate increased efforts by them.' The court sought to allocate the options between community and separate property according to the time rule. H appealed.