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What issues could my pay structure cause in my divorce?

On Behalf of | Dec 13, 2019 | Family Law | 0 comments

When it comes to a divorce, the Pennsylvania court and your spouse’s legal team will look closely at your income. How much you make may impact a few different aspects of your divorce agreement. However, if you make your living at a job that does not have a traditional pay structure, this could create some headaches.

Forbes explains that bonuses and commissions can pose some trouble when negotiating property division, child support and spousal support. If you earn a commission, your income may go up and down, depending on your ability to sell and the current conditions of your industry. If you have an outstanding year before filing for divorce, it could set you up for some trouble in the future since the court will look at those as your earnings.

When it comes to bonuses, it depends on how your employer pays them. If you get a bonus upfront with the potential for the employer to take it back if you do not perform well, then you may be able to have the court not consider it as part of your earned income. A bonus you get at the end of the year, though, will usually count.

There is another issue with your income that might happen. This is if you leave a job and start a new one just before filing for divorce. If you receive a signing bonus, the court will not include that as an asset. However, if you receive perks that your new employer provides to match what you had at your old job, it is a gray area. The court could rule those become assets.

Money is often an issue during a marriage, so it should not be a surprise that it will still be an issue during the divorce. You should make sure that you pay attention the how the court and your spouse look at your compensation to ensure you do not lose out. This information is for education and is not legal advice.



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