Is vacation pay considered community property?

Bay Area Family Law clients may wonder if unused vacation pay is community property. The answer depends on the Court. 

Technically, vacation pay is similar to pension or retirement benefits and is considered community property divisible during divorce. However, this does not necessarily mean a court will divide the benefit in two.

Whether or not vacation pay is divisible depends on the liquidity. One California court has held that accumulated vacation time has no value because it could not be convertible into cash. (Marriage of Lorenz). Another recent case, Marriage of Moore, stated that accrued vacation pay was divisible asset when value was clear from evidence.

If vacation pay is an issue for your divorce, contact a family law attorney now to learn what these cases mean for you.