Divorce can become significantly more complicated when a spouse receives compensation through bonuses, stock awards, deferred compensation, pensions, or valuable employment benefits. At Mette Attorneys at Law, our executive divorce attorneys in PA help professionals address these interests while planning for their financial future.
Divorce for Executives and Professionals
Under 23 Pa.C.S. § 3501, property acquired during the marriage is categorized as marital property. Marital property is typically divided between spouses equitably during divorce. Property acquired before the marriage is categorized as separate property, and is typically not divided during divorce unless it has grown in value over the length of the marriage or commingled with marital assets.
However, executive divorce cases can involve financial arrangements that are not found in a typical case. A spouse may receive a base salary along with:
- Annual bonuses
- Equity awards
- Retirement benefits
- Deferred compensation
- Company perks
- Additional incentives tied to performance and continued employment
To fairly divide property, assets must be traced and valued before the property division stage of divorce can begin. Our attorneys can work with appropriate financial professionals when valuation or financial analysis requires additional expertise. This can be especially important when compensation changes from year to year or when future benefits depend on continued employment.
Executive Compensation
Executive compensation can require careful review before a fair settlement can be reached. A compensation package may include multiple forms of income that appear straightforward on a pay statement but have different legal and financial implications in divorce.
For example, an executive may have earned a bonus during the marriage but received payment after separation. Identifying when the benefit was earned, the conditions attached to it, and its current value can be important in determining how it should be addressed.
Stock and Deferred Awards
Equity compensation can create particular challenges when an executive holds stock options, restricted stock units, or other awards that are not fully vested. Our lawyers can review the governing compensation documents and consider the vesting schedule, award date, exercise terms, and other restrictions. This can help clarify the nature of an award and provide a more informed basis for negotiating a settlement.
Deferred compensation can create similar concerns. An executive may have earned compensation during the marriage that will not be paid until a later date. The settlement should account for the future payment and any conditions that could affect its value.
Privacy and Reputation
Professionals may have concerns about keeping sensitive financial information as private as possible during divorce proceedings. Mette Attorneys at Law takes these concerns seriously when developing a legal strategy. Our past experience allows us to address necessary financial disclosures while remaining attentive to the professional and personal consequences that can accompany a highly visible or sensitive divorce.
Settlement Planning
A settlement involving executive compensation should account for more than the immediate value of an asset. An agreement that appears financially equal on paper may produce very different results if one spouse receives a liquid asset while the other receives compensation that is subject to future vesting, taxes, employment conditions, or market changes. Our lawyers can help evaluate the broader financial picture and determine how a proposed settlement could affect your future finances.
Our Executive Compensation Divorce Lawyers in Harrisburg, PA Can Help
Divorce can bring uncertainty, especially when complex financial interests are involved. Mette Attorneys at Law can help you develop a settlement strategy that considers both your current needs and your financial future. Contact our executive compensation divorce lawyers today by calling 717-232-5000 or using our online contact form.