“The appellant also challenges the application judge’s treatment of the LTIP [long-term incentive plan] payment made to the respondent by his employer in November 2003. The evidence at trial was that on execution of the retirement agreement between the respondent and his employer, the respondent’s unvested options were cancelled in accordance with the company’s usual practice on the departure of a senior executive. The agreed LTIP payment represented the value of the respondent’s vested options.
In these circumstances, the application judge correctly recognized that s. 13 of Schedule III of the Child Support Guidelines, O. Reg. 391/97 was engaged. That provision requires that the profits on the exercise of a stock option are to be brought into the recipient’s income in the year of exercise. This is dispositive of the income allocation issue relating to the LTIP payment.”