We conclude with today’s blog entry a multi-post look at a singular concern for select divorcing couples in New Jersey and nationally.
Namely, that is the importance for separating partners in comparatively high-asset dissolutions to note differing income types and the impact that divorce timing considerations can have on their distribution. We stressed in our September 11 post that “the failure to properly distinguish among different forms of income during the dissolution process can end up costing a soon-to-be ex plenty.”
We elaborated on that theme in our September 13 entry, providing some examples to underscore the point. Specifically, we referenced a divorcing spouse’s pre-paid bonus subject to a company claw-back provision, and commissions owed to one impending ex during the divorce process. We stressed that those assets could conceivably be deemed either separate income or divisible marital assets. That depends on how they are characterized and when they are deemed to take legal effect.
There are many additional scenarios concerning asset type and linked asset distribution that can come into play in divorces featuring multiple income streams. Several of those are well noted by the authors of a recent Forbes piece focused on dissolution-linked income treatment. In addition to the examples cited in the foregoing paragraph, they include things like these:
- Bonuses applicable to previous year (almost certainly deemed marital income subject to division)
- New-job compensation (if it matches benefits already earned by a spouse at the previous workplace, a divorcing partner might make a marital claim to it)
- Stock options (timing/vesting issues vary, as do states’ laws)
- Perks from current employment (if they help to support a family’s lifestyle, they might be judicially construed as compensation and a divisible marital asset)
Income treatment and related divorce timing considerations are matters we routinely focus upon for our valued and diverse clients at the Law Office of Rajeh A. Saadeh. We welcome contacts to the firm and the opportunity to provide clarity and strong legal representation concerning such topics.