“Cover all
the angles”
Related links 
Make an enquiry
Read more articles in: Blog, Family Law, Stuart Daniel
A Christmas bonus can often reflect hours of hard work and commitment and is a personal achievement for many.
When you are going through a divorce settlement, it is natural to want to keep what you have earned.
As that Christmas bonus appears on your paycheck, it is important to know how your finances are affected and shared with your ex-partner during divorce settlements.
When dividing finances on divorce, the court applies Section 25 of the Matrimonial Causes Act 1973.
This requires the court to consider all the circumstances of the case, with the first consideration being the welfare of any child.
One of the main factors is each party’s income, earning capacity and financial resources, both now and in the foreseeable future.
Bonuses do count as a financial resource and must be disclosed, but this does not mean they will be automatically shared.
If your bonus has already been paid and remains in your bank account, it is likely to be treated as a capital resource.
Where a bonus was earned during your marriage, it is usually considered a matrimonial asset.
In many divorces the expectation may be for there to be a fair and broadly equal division of the marital assets, although this can be adjusted depending on personal requirements and overall fairness.
If the bonus was earned after your separation, there may be a strong argument that it is non-matrimonial.
Whether you can keep it will depend on whether the overall marital assets are sufficient to meet both parties’ needs, particularly around housing and income.
Personal needs can often take priority over arguments about timing for the matrimonial pot and legal advice may be required to achieve the best outcome from your divorce.
Bonuses that have not been received yet are usually treated as income rather than capital.
Future income is not automatically shared on divorce, but it can be considered if one party is seeking spousal or child maintenance.
Where bonuses include deferred elements, such as shares or options, matters become more complex.
Careful legal advice is essential so that your settlement is fair and doesn’t place pressure on your liquid income.
To protect your future bonuses, you may look to a clean break financial order to end all ongoing financial claims between you and your spouse.
This means that your ex-partner will not have any rights over your future income and bonuses cannot be revisited.
The treatment of bonuses is not the same for every settlement and we can help guide you on how your assets will be affected by your divorce.
Our expert team can help you negotiate a fair outcome and provide clarity during a difficult time.
To learn more about bonuses or financial claims on divorce, speak to our Family Law team today.
Director – Head of Family Department
I qualified as a Solicitor in 2006 and now specialise in divorce, financial settlements, childcare arrangements and Pre Nuptial Agreements. I have many years’ experience as a private family lawyer having worked with two other local firms before returning to Mander Hadley, where I first undertook work experience during my university studies.
Latest posts by Stuart Daniel (see all)
