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Divorce is always complicated, especially figuring out the financial side. Even with a prenuptial agreement or amenable parties, asset division can involve significant negotiation. One of the biggest challenges, however, is determining all components of executive compensation during a Hackensack divorce.
O’Cathain Law Group Family Law Department’s decorated family law attorneys know the ins and outs of support awards and settlements under New Jersey law. They can use their skills to determine the executive compensation your spouse may have earned through his or her employment. Whether it’s a high-asset divorce or bonus compensation, talk to a member of the O’Cathain Law Group Family Law Department today about how to ensure the fair determination of executive compensation during divorce proceedings.
Executive compensation is a form of employment compensation outside of the traditional salary and benefits. It is generally provided to upper-level employees and management, though not exclusively. Some forms of executive compensation include:
Executive compensation poses a few challenges for asset distribution during a Hackensack divorce. Firstly, it can be difficult to definitively quantify and support determinations. The value of market-based executive compensation, like stocks, fluctuates daily, or spouses may not be able to take advantage of stock options until after divorce proceedings end. Secondly, many forms of executive compensation are not transferable, meaning that only the employee themself can hold the rights to them. Thirdly, there may be tax or other financial disadvantages to receiving executive compensation during a divorce distribution. Finally, executive compensation may affect alimony or child support.
For these reasons, it is important to consult with a divorce attorney about executive compensation.
There are two kinds of property relevant to divorce proceedings: separate property and marital property. Separate property is property held by each spouse prior to marriage. Marital property is property acquired by each or both spouses during the marriage, except gifts or inheritance.
New Jersey is an equitable distribution state, meaning that marital property is distributed fairly rather than necessarily equally. In determining fairness, the court looks to the factors listed in the New Jersey Statutes Annotated § 2A:34-23.1. These include the length of the marriage, the health of the spouses, the standard of living the spouses established during marriage, each spouse’s economic and non-economic contributions to the marriage, debts, child support needs, and the terms of any prenuptial agreements. Certain components of executive compensation earned during the marriage could be considered marital property subject to division between the spouses.
Our experienced attorneys in Hackensack can inventory your assets and provide a realistic estimate of how a court may divide those assets during a divorce. Our attorneys work closely with forensic accountants to determine the value of various components of executive compensation and to determine what funds are available for support.
If you are worried about executive compensation during a Hackensack divorce, talk to an experienced family law attorney today. The team at O’Cathain Law Group Family Law Department can help make your divorce easier by representing your interests and fighting to ensure that all executive compensation is identified in your divorce. Call to schedule a consultation to discuss your case.