How does deferred compensation come into play during a high asset divorce?

Family Law specialists with over 59 years of experience.

Deferred compensation accounts are assets that will need to be divided in a divorce if they are marital property. Property is either separate or marital, and you can leave the marriage with your separate property. But marital property must be divided equitably based on various factors.

Unless you have a prenuptial agreement that identifies what is marital and what is separate property, Ohio law comes into play. Ohio’s law is simple: it will consider property marital if you earned it while married.

Deferred compensation is compensation or earnings held back for payment in the future. Typically, most employees use a deferred compensation plan as a retirement savings vehicle, though this is not always the case.

Here is how deferred compensation comes into play for a high asset divorce: If you earned the compensation while married, it is considered marital property even if you do not access the compensation until after you divorce. By contrast, if you earned deferred compensation while single, it is usually considered separate property.

Often, many workers set up a deferred compensation account while single but continue to defer comp while married. In that case, an accountant usually needs to carefully look at how much you deferred while single and calculate the value of those contributions, which will be separated out from the contributions made while you were married.

When it comes to dividing marital property, you have some options with respect to a deferred compensation account. For one, you could keep the entire account and have your spouse get other marital property in an offsetting amount.

Another option is to divide the account. This will require a Qualified Domestic Relations Order (QDRO), which is necessary to create a separate account for your spouse.

Client Reviews

Had free consultation. Advice given was taken, and resulted in change of mind in the other/opposing party. We therefore did not need to retain. Should opposing party resume original opinion, we will retain.

Kit

I was in a terrible custody dispute with my ex. I was very upset and afraid of my ex. Rodd listened to everything I said and remembered everything I said. He was aggressive in court and used the information I gave him very well. We won the case and my ex has backed off.

anonymous

I wanted an easy divorce from my wife. She wanted a fight. Rodd and I discussed fair terms for a dissolution. Because he was pro active and stayed on top of the case, my wife and I finally reached an agreement and had a dissolution. I highly recommend Rodd.

anonymous

I hired Linda Lawrence because I have a business and I wanted to protect it in my divorce. Linda is top notch and knows about business finance and assets. I was able to keep my business and not have to pay my wife anything from it. Hire her.

Linda

I hired Linda Lawrence because I needed an aggressive attorney. Linda was able to stand up against the other attorney and was very aggressive in court. It was an expensive divorce case, but that was because the other attorney was very aggressive and Linda was very thorough. I had great results in my case and highly recommend Linda.

Joy
VIEW MORE TESTIMONIALS

Our Practice Areas

Family Law

Attorneys for Divorce, Child Custody & More At the Lawrence Law Office, we are committed to helping families in conflict find creative solutions that focus on addressing their goals and...

Divorce

Columbus & Delaware, OH Divorce Lawyers In Ohio, there is more than one way to separate from your partner and dissolve your marriage. A divorce is typically a contested proceeding, with each side...

Contempt and
Enforcement and
Post divorce

When working through your divorce with an Ohio family law attorney, chances are your divorce agreement made allowances for child support. spousal support or

Business owner
divorce

Dividing the marital assets between divorcing people can be one of the most contentious issues during the entire divorce process. Ohio law allows the couple to work together with...

Child Custody

Dividing the marital assets between divorcing people can be one of the most contentious issues during the entire divorce process. Ohio law allows the couple to work together with...

High Asset
Divorce Cases

Helping With Child Custody, Visitation & Support Updates Or Modifications Sometimes circumstances substantially change after a divorce and require parents to revisit an existing...

VIEW ALL PRACTICE AREAS

Lawrence Recent Blog Posts

July 8, 2019 in divorce

Who Gets What: Division after Divorce

Marriage is as much an economic union as it is a romantic or spiritual one. In Ohio, couples who divorce must divide their marital property.…
Read More
July 8, 2019 in divorce

Spousal Support vs. Alimony

Divorce can be very financially unfair to one of the spouses, who might have far less earning power or separate property. Under Ohio law, a…
Read More
June 3, 2019 in divorce

Everything You Need To Know About Divorce In Ohio

Filing for a divorce may be the best thing for you and your spouse if your marriage has reached the point where reconciliation is impossible.…
Read More
June 3, 2019 in prenuptial agreement

What Is A Prenuptial Agreement?

Getting married is a big decision. Indeed, not only are you committing to spending the rest of your life with someone, but you are also…
Read More