A person must disclose many types of executive compensation during a Florida divorce proceeding. Understanding the different types can ensure that your soon-to-be ex-spouse is not hiding money from you.
The most common type of executive compensation is a person’s salary. While many companies allow executives to earn enough to live comfortably, companies often use other types of compensation. You must investigate further if all your soon-to-be ex-spouse is reporting is their salary.
Many companies give executives large bonuses if the company meets specific goals or if the area that the person oversees meets or exceeds expectations. This payment can be in the form of a cash payment, usually quarterly or annually, but it can also be in company stock.
Companies may also allow executives to purchase stock at a reduced price. Generally, stock options earned during the marriage are considered marital property and must be divided during the divorce.
Restricted stock is company shares that are not in the person’s name. A person who wants to sell restricted stock must do so via a special stock market. Like stock options, if earned during the marriage, they are marital property and must be divided during a divorce.
A company sometimes pays an executive through deferred compensation, meaning the person earned money in one year, but the company pays it in a future year. As long as the executive earns the compensation during the marriage, they must report it when preparing for a divorce.
An executive must report all types of executive compensation during a divorce, and it is generally considered marital property that must be divided.