Negotiating with your spouse over your settlement may not be a complicated matter if you receive a salary as your compensation. But if you work for a larger company or a corporation and receive compensation in ways other than a salary, you may have to negotiate more carefully if you are to keep as much of your compensation as possible.
Since there are many forms of compensation, you will have to tailor your negotiations to address whatever form of compensation you receive. Forbes explains some of the common types of business compensation that people address in their divorces.
Previous year bonuses
Timing can be a factor in whether a court will divide up your compensation. For instance, if your employer pays you a bonus for work you performed before you filed for divorce, perhaps in a prior year, a divorce court may rule that your bonus is a marital asset. Also watch out for a motion from the opposing counsel to double count your bonus. In some divorces, an opposing attorney may want a bonus divided and then have the full bonus amount counted as part of support obligations.
Timing also matters when a company pays you a commission. If you receive a commission before filing for divorce, your spouse may argue the compensation is marital property. However, if you file for divorce and later receive the commission, you have a stronger argument that you never earned the commission until the company paid it out, making it separate property.
New job compensation
During your divorce, you might leave your current job to go work for a new employer. In this situation, your new company might grant you a compensation package that matches what you had received at your old job. This could cause complications because your spouse might receive a share of your new compensation if a judge rules that your new compensation is merely an extension of your old package and not a new form of revenue.
Perks you receive from your company may also factor into divorce negotiations. If perks such as housing or a company vehicle help support your lifestyle and those of your family, a divorce court may consider those perks as forms of compensation. As a result, they will contribute to your income and may enlarge your support payments.