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How income affects the property division process in divorce

On Behalf of | Aug 19, 2019 | Divorce

When a marriage ends, there are often significant concerns regarding what the financial future will look like. The terms of the final order will affect a Virginia reader for years to come, and a person’s income structure will play a significant role in this. How and how much a person is paid will impact how he or she fares in the divorce. 

If a person makes a normally structured salary, such as receiving paychecks every two weeks, this will not be complicated to address during a divorce. However, there are pay structures that can be quite complex, such as those that may offer bonuses, commission pay and more. The lesser-earning spouse may be entitled to spousal support, and the amount of this support depends on the pay of the other spouse.

There are certain types and forms of compensation that could impact negotiations in a divorce. This includes paychecks, but also things like prepaid bonuses, bonuses with a clawback terms, commissions, compensation from new employment and more. Another factor is the perks that may come with the job of one spouse. For example, a company car used by the whole family may factor into divorce negotiations, as well as other things that affect the lifestyle of the other spouse. 

Divorce is a financially complex process, and a Virginia reader will find it beneficial to be thoughtful and cautious as he or she negotiates the terms of the final order. Income structure and benefits can factor into spousal support and property division, and thoroughly considering these issues can help avoid the need for future post-divorce complications. Before agreeing to the terms of a divorce, it may help to discuss concerns with an experienced legal advocate.