High Net-Worth Divorce in Orlando: Protecting Your Financial Interests
Orlando is home to many professionals, executives, and business owners who earn substantial income through salaries, performance bonuses, and stock options. These financial incentives can create significant challenges in divorce cases, especially when determining how they should be divided under Florida law. If you or your spouse receive bonuses or stock options, it’s important to understand how they may impact your divorce settlement.
As an Orlando high net-worth divorce Attorney, I represent individuals on both sides of this issue. Whether you are seeking to protect your hard-earned assets or ensure that marital property is fairly divided, I can help you navigate this complex area of divorce law. My name is Beryl Thompson-McClary, and I handle high-asset divorce cases throughout Orange County, Florida. Call me at 1-888-640-2999 to schedule a consultation and discuss your case.
How Florida Law Defines Bonuses and Stock Options in Divorce
Florida follows equitable distribution under Florida Statutes § 61.075, meaning that marital assets are divided fairly, though not necessarily equally. The key question in any divorce involving bonuses or stock options is whether these financial incentives are classified as marital property or non-marital property:
- Marital Property: Bonuses and stock options earned or granted during the marriage are typically subject to division, even if they have not yet vested.
- Non-Marital Property: If an individual received stock options or bonuses before the marriage, they may be considered separate property, unless marital efforts contributed to their increase in value.
Understanding this distinction is critical in determining how these assets should be handled in a divorce settlement.
Dividing Bonuses in a Florida Divorce
Bonuses are often a major source of compensation for executives, sales professionals, and business owners. However, determining whether a bonus is subject to division depends on several factors:
- When the Bonus Was Earned: If a bonus was awarded for work performed during the marriage, it is likely marital property. If it was earned after the divorce filing, it may be considered separate property.
- Whether the Bonus Was Guaranteed or Discretionary: Courts distinguish between guaranteed bonuses (which are typically divided as marital property) and discretionary bonuses (which may be harder to claim).
- Annual vs. Performance-Based Bonuses: Annual bonuses that are a regular part of income are often treated differently than one-time performance bonuses, which may have elements of future earnings attached to them.
For high-net-worth individuals, bonuses can make up a significant portion of total compensation. Properly structuring a divorce settlement can help protect your financial future while ensuring a fair distribution of assets.
How Stock Options Are Handled in Florida Divorce Cases
Stock options present even more complexity in a divorce because they are often granted but not vested at the time of separation. Courts must determine whether stock options are:
- Marital or Non-Marital Property – If the options were granted during the marriage, they are likely subject to division, even if they have not yet vested. If they were granted before the marriage, they may be separate property unless enhanced by marital efforts.
- Vested or Unvested – Vested stock options are typically easier to divide, while unvested options require complex valuation methods.
- Part of Future Earnings – If stock options are tied to future performance, courts may treat them as potential future income rather than marital property.
Florida courts typically use two primary methods to divide stock options:
- Time-Rule Formula (Coverture Fraction): This method assigns a percentage of the stock options to marital property based on how much of the vesting period occurred during the marriage.
- Deferred Distribution: In cases where stock options have not yet vested, the court may allow a deferred division where the receiving spouse gets their share only if and when the options vest.
Each case is unique, and determining the best strategy depends on the specifics of your financial situation.
Addressing Both Sides of the Issue
If You Are the Spouse Receiving Bonuses or Stock Options
If you are the spouse who has received substantial stock options or performance bonuses, protecting these assets should be a priority. You may need to:
- Prove that Certain Options Are Non-Marital: Keeping records of when options were granted and whether they were earned before marriage can help.
- Negotiate a Buyout: Instead of dividing stock options, offering other marital assets in exchange can help retain control over your financial incentives.
- Consider Tax Implications: Stock options often have tax consequences when exercised, which should be factored into settlement negotiations.
If You Are the Non-Earning Spouse Seeking a Share of These Assets
If your spouse has received bonuses or stock options during the marriage, you may be entitled to a fair share. To protect your interests, you should:
- Request Full Financial Disclosure: Ensuring that all stock options and bonuses are included in financial disclosures is essential.
- Use Forensic Accounting If Necessary: Some spouses attempt to hide or undervalue stock options. A forensic accountant can help uncover their true value.
- Negotiate a Structured Settlement: If stock options are unvested, negotiating a structured payout can help ensure you receive fair compensation over time.
FAQs About Bonuses and Stock Options in Florida Divorce
Are stock options considered income for alimony or child support?
Yes, stock options can be considered income for determining alimony or child support if they are exercised and generate financial gain. Courts may calculate their value based on when they vest and how they are exercised.
How are unvested stock options divided in a Florida divorce?
Courts use a time-based formula to determine what portion of the options is marital property. The coverture fractionmethod is commonly used, assigning a percentage based on how long the options were subject to vesting during the marriage.
Can my spouse prevent me from claiming their bonuses in a divorce?
A spouse cannot legally hide bonuses or stock options in a divorce. Florida law requires full disclosure of all marital assets, including deferred compensation and executive benefits.
Do I have to pay capital gains taxes on stock options in a divorce settlement?
Tax consequences depend on how stock options are transferred or exercised. If stock options are awarded as part of a divorce settlement, taxes may apply when the receiving spouse exercises them. Consulting with a financial professional is advised.
Can a prenuptial agreement prevent stock options from being divided in a divorce?
Yes, a properly drafted prenuptial or postnuptial agreement can exclude stock options from being classified as marital property. If an agreement was signed, the court will review its validity.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
Handling bonuses and stock options in a Florida divorce requires a deep understanding of financial and legal complexities. As an Orlando high net-worth divorce Attorney, I help clients on both sides of these disputes reach fair resolutions that protect their financial future. If you need experienced legal representation, call 1-888-640-2999 to schedule a consultation today.
Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
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