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Divorce and executive compensation

On Behalf of | Nov 15, 2023 | Divorce

When spouses file for divorce in Florida, negotiations over asset distribution may become a priority. When one spouse earns significantly more than the other, the other spouse may worry about their financial footing after the marriage ends. Sometimes, confusion may arise about how to address matters related to executive compensation. A wealthy executive could have many benefits that become an area of contention during divorce proceedings.

Matters of executive compensation

Executive compensation may focus on rewarding company officers for their performance. Bonuses, stock options, and other financial perks could be part of the deal. One spouse might be unaware of the details associated with this. Learning about the compensation package becomes more than helpful when seeking a fair and equitable settlement.

Executive compensation could be more complex than some realize. For example, with stock options, the person holding the options might not be able to cash them for a set amount of years. The value of those stock options could be much more in a few years than they are currently worth. So, there may be about the valuation of the stock options during the divorce proceedings.

Seeking an equitable settlement

Thoroughly examining all assets a wealthy spouse holds could be a vital part of the divorce settlement process. The full disclosure of executive compensation, crypto assets, and valuable collectibles may further the cause of negotiating equitable property division and reasonable spousal support.

There could be instances where one spouse tries to hide assets to save money during the settlement process. Such behaviors could result in legal jeopardies, but some may still take the risks. A thorough investigation may uncover such actions, leading to receiving a potentially better settlement.

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