Asset Protection Attorney Dutchess County
A Delayed Compensation Agreement May Be Marital Property
It is not uncommon for executives to receive part of their compensation or severance package in the form of delayed compensation. Such packages can muddy the waters for both parties in a divorce property settlement. On the one hand, a spouse may argue that delayed compensation was earned for work performed during the course of the marriage. It should, therefore, be characterized as joint marital property and subject to equitable distribution. On the other hand, the entitled spouse may argue that the compensation should be characterized as separate property, as it will not be earned income until after the property settlement has been finalized.
More Than 25 Years of Experience, Fighting Hard to Protect Your Interests
New York is not a community property state. Any dispute over whether delayed compensation should be considered marital property or separate property is referred to as a characterization dispute. Resolving the dispute is often the cornerstone of a property settlement. Under certain circumstances, one spouse or the other will find it advantageous to argue that a particular asset is separate property and should not be subject to division.
Divorce property settlements between spouses of high net worth are often complex and require skillful knowledge of how courts apply case law decisions to specific property settlements. At the firm of Jonathan D. Katz, Attorney at Law, I am recognized among New York family law judges and professionals for the capacity to resolve the most complex issues involving financial property such as delayed compensation income, executive bonuses and investment accounts.
If delayed compensation will be a concern in your pending divorce, make sure you have a lawyer who has experience dealing with the tough litigation process. Contact my offices in New Paltz, New York, to schedule an opportunity to meet with me to discuss your concerns.
