22 Oct How You Get Paid Matters in Divorce
You already know that how much you make plays a role in divorce, especially if you’re thinking ahead to spousal support in Hackensack, but did you know that how you get paid also makes a difference? The Law Offices of Jeffrey M. Bloom regularly sees clients who are surprised that their particular type of bonus or incentives are a critical part of their divorce. For those who have a salary with no types of bonuses, negotiations can be pretty straightforward with a divorce. However, if things aren’t as straightforward, it’s time to get immediate legal help on your side.
How Are You Paid?
If you get prepaid bonuses with a clawback provision (for instance, if you don’t meet a certain performance benchmark or quit the company, so it’s withdrawn), what does that mean for your soon-to-be-ex? There needs to be clear conditions written into the bonus contract that stipulates whether your ex would also have to pay back the bonus money. In many cases, if you have to give back the funds because you quit, your spouse might not have to. The circumstances for the clawback are usually what dictate these decisions.
If you get a bonus for the prior year’s work before filing for divorce, it will almost certainly be a “marital asset.” That means it can be divided between the two of you. However, “double counting” can also take place, which means the bonus is considered part of your total income to calculate for higher spousal support obligations.
Those working for commission need to be savvy in terms of when they file for divorce. If you’re about to close a deal that comes with a big commission, you might want to hold off if you can. Your ex might say that since the deal closed before the divorce was filed, the commission is marital property. However, even if that does occur, you can argue the commission wasn’t earned until it was technically paid (and after divorce was filed).
Protect Yourself And Your Assets
From stock options to perks, there are technicalities between all types of payment structures to consider when divorce is looming. The best way to protect your assets and ensure a fair divorce is to work with the experts. Call the Law Offices of Jeffrey M. Bloom in Hackensack, New Jersey at 855-208-3650 today.