Can You Defer a Bonus During an Orlando Divorce?

Many of the highest earners in Florida accept significant bonuses each year. The average CEO receives 50% of their income in the form of bonuses, and these payments are often structured as stock options. As a result, bonuses could become a point of dispute between spouses during property division in Orlando. You might have heard that it is possible to “defer” a bonus until after the divorce. But what is the advantage of this strategy? Is it even legal? These are questions you might want to ask a divorce lawyer.

Should You Defer Your Bonuses Until After the Divorce? 

Why should you even consider deferring a bonus until after your divorce in Orlando? The obvious answer is that this strategy allows you to keep hold of your bonus without dividing it with your ex. Generally speaking, all income you receive during your marriage is “marital property.” As a result, you need to divide it with your ex.

However, any income you receive after your date of separation may be considered “separate property” – and you can keep 100% of its value. For reference, your date of separation is usually the date when you move out of the family home. Alternatively, it might be the date when your ex moved out.

So what happens when you defer your bonus until after your date of separation? In theory, this would allow you to keep your bonus. If you simply accept the bonus during the marriage, you might only receive 50% of its value.

Am I Allowed to Defer a Bonus During a Florida Divorce?

 But is such a strategy even legal? Under Florida law, all compensation that is “earned” during a marriage is marital property – even if a spouse doesn’t receive this compensation until after the marriage. In the eyes of Florida family courts, your ex should benefit from the work you completed during the marriage. As long as the bonus is tied to a specific work period you completed during the marriage, it could become marital property.

That being said, this subject can become quite complex – and bonuses are often disputed by both spouses. You might be able to argue that your bonus is associated with a work period that occurred outside of your marriage.

One thing to keep in mind is that concealing the presence of a bonus can lead to serious consequences. Private agreements with your employer could theoretically allow you to push back bonuses without anyone finding out. However, these strategies are quite risky – and they could constitute “financial misconduct” in the eyes of family courts. To approach this situation in the most effective manner, speak with an experienced divorce lawyer.

Can an Orlando Divorce Lawyer Help with Property Division? 

A divorce lawyer in Orlando may be able to help you with some of the most challenging aspects of property division. To discuss your options in more detail, consider a consultation with Steve Marsee, P.A. We know that high-income professionals often earn significant sums in the form of bonuses, and you may be able to keep 100% of this income. Reach out today to get started with an action plan.

Sources: 

fool.co.uk/2020/12/30/vested-vs-unvested-what-does-it-mean/#:~:text=Vested%20stock%20is%20stock%20you,terms%20of%20your%20vesting%20schedule.

hbr.org/1990/05/ceo-incentives-its-not-how-much-you-pay-but-how