How are vested stock options treated as income when calculating child support in Ontario?

Stock options that have vested and are exercised generally result in a real financial benefit to the parent, the difference between the exercise price and the shares' value at the time, and that benefit is generally treated as part of the parent's income for the year it's realized, similar to a bonus or other employment-related compensation. Options that have vested but have not yet been exercised are more complicated, since no cash or realized value has actually changed hands yet, though a court can still consider their existence as part of a parent's overall financial picture, particularly where compensation is structured heavily in options rather than salary.

This matters most for executives or senior employees whose overall compensation includes a significant equity component, since relying only on base salary can significantly understate what they are genuinely earning. Because option values can also fluctuate and vesting schedules vary considerably by employer, courts generally need detailed disclosure of the actual compensation structure, vesting terms, and any exercises or sales that occurred, rather than assuming a simple formula applies. A parent whose compensation includes meaningful stock options should expect this to be an area of focused financial disclosure in a support dispute.