Stock options granted to a spouse married under the statutory community of marital property regime constitute separate property
Stock options granted to a spouse married under the statutory community of property regime constitute separate property by nature, and only shares acquired by exercising the option before the dissolution of the community are included in the community assets.
In a judgement handed down on 25 October 2023, the First Civil Chamber of the Court of Cassation confirmed its earlier case law, once again qualifying as separate property by nature stock options granted to a corporate officer married under a community of marital property regime.
Until exercised, the option is non-assignable. It is because of their non-assignable nature that the Court of Cassation considers stock options to constitute separate property by nature. The category of separate property by nature includes, in particular, non-assignable claims and all rights exclusively attached to the person.
Shares subscribed for or acquired through the exercise of stock options become part of the community if this exercise takes place during the marriage and remain separate property in the event of an exercise after the dissolution of the community.
While the Court of Cassation has yet to decide what will happen to free shares, the reasoning regarding stock options should also apply to free share rights.