Protecting What Matters Most

Understanding executive compensation in a New York divorce

On Behalf of | Sep 26, 2023 | High Asset Divorce

Dividing assets in a divorce can be complex. It becomes even more complex when executive compensation is in the picture. 

Understanding how executive compensation works and how it is divided in a divorce can help you know what you are entitled to. 

Types of executive compensation

There are several types of executive compensation, including:

  • Salaries
  • Bonuses
  • Stock options
  • Retirement plans
  • Deferred compensation packages

Some assets are considered marital property. They are subject to New York’s equitable distribution law in this situation. However, others are separate property. This means they belong exclusively to the executive spouse. 

Asset valuation

Valuation is next after determining what type of executive compensation is involved with your divorce. Sometimes, an expert is needed for this. You may need a forensic accountant or financial advisor to determine the value of the assets. One reason for this is that outside factors like vesting schedules for stock options and the company’s future performance may impact the value of these assets. 

The role of equitable distribution

As mentioned, New York is an equitable distribution state. This means marital assets are not automatically split 50-50 but are divided fairly for both parties. Factors like the length of the marriage, contributions to the marital property and the financial needs of each spouse are considered. 

If your divorce involves dividing executive compensation, you need to understand the complexities of this. Usually, it is something that experts are needed for, which will ensure the true value of the assets is known and that the division of them is fair. Knowing your legal rights and options in these situations is crucial. It will help you protect yourself when going through a divorce. 


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