High-value divorces can be complicated because they may involve complex income and compensation arrangements. When one spouse earns significantly more than the other, spousal support may become an important issue.
In Ohio, the courts are generally required to consider all sources of income and compensation when reviewing a spousal support request.
Important considerations for spouses seeking support
Deferred compensation refers to benefits that a spouse earns but does not receive immediately. When a spouse receives deferred compensation, the other spouse seeking support should consider:
- Reviewing all types of compensation: A spouse seeking support should look beyond the other spouse’s base salary. Total compensation may include annual or performance-based bonuses, commissions, incentive payments, stock options, restricted stock units, deferred bonuses and executive benefits. Without a complete accounting of these sources, the spousal support figure may significantly understate what the higher-earning spouse actually receives.
- Determining when compensation was earned: Whether a deferred benefit counts as marital income or property often depends on when you earned it relative to the marriage. Courts generally treat benefits you earned during the marriage differently from those you earned before or after it.
- Examining the terms of compensation: The spouse seeking support should determine whether the benefit has any conditions or requires continued employment. These terms can help show when the compensation might become available to the spouse.
Complex compensation can require careful financial analysis during a high value divorce. The parties may need to account for these arrangements when negotiating the terms of spousal support.
Why timing and classification matter in Ohio spousal support cases
Deferred compensation can complicate spousal support negotiations, since it may not become accessible until the divorce is final. Ohio courts generally address the division of marital property separately from spousal support. How a court classifies deferred benefit and when that benefit becomes accessible can significantly affect what a final support arrangement looks like. An experienced Ohio divorce attorney can help you evaluate these arrangements before you sign off on an agreement.
