Employee Bonuses and Divorce
As economic stresses put more pressure on employers to find creative solutions to cut costs while rewarding employees for hard work or completing extra projects, the employee bonus has become an important compensation tool. Although budgets may be restricting costs, opinions on low salaries may be off-set by bonus payments. This method also rewards the hard-working, making a positive example for the rest of the company. However, when divorce divides property, an employee’s bonus can be a point of contention. There have been some legal disputes over when a bonus counts as being the property of an employee, meaning that it may or may not count in a divorce.
For experienced legal help with your divorce proceedings, contact the West Palm Beach divorce attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.
Employee Bonus Guidelines
Although the state may determine how a bonus is specifically classified, some general guidelines have been ruled on. These precedents have established the following:
- Bonuses earned and received prior to marriage are separate property
- Bonuses earned but not received prior to marriage are separate property
- Bonuses received after marriage may be considered marital property
In certain states and in certain situations, these general points may not be upheld. For example, in some states certain premarital properties may be divided in divorce. In these states, the nature of the bonus may more appropriately determine whether it can be divided, and who will be awarded what share of that money or stock.
Contact Us
By having an experienced attorney to represent you through the divorce process, you can help ensure a favorable outcome. Contact the West Palm Beach divorce lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800 to discuss your situation.
