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Splitting commissions/bonuses during divorce may cause confusion

Property division remains a major source of conflict for many couples going through the marital break-up process. An aspect of property division that may especially be confusing is the splitting of a spouse's work-related bonuses and commissions. Here is how bonuses and commissions are treated during the divorce process in Texas.

Perhaps a spouse receives an employment bonus for work completed prior to the divorce filing. In this situation, the bonus will likely be deemed a shared asset, or community property. Because Texas is a community property state, this means that the court will divide this bonus down the middle, or 50/50.

For any commissions received before the divorce filing, the court will likewise divide these payouts equally between the two spouses. However, perhaps a spouse completed work for clients before the divorce filing but will not receive commissions for this work until after the divorce filing. In this case, when those commissions are received, they will likely be deemed separate property. This means that they will not be subject to property division.

The splitting of assets, which may range from bank account funds to stocks and real estate, is not always clear cut and thus can be confusing for both spouses going through the divorce process. However, an attorney can help a divorcing spouse to understand the asset distribution process and provide an estimation of how this process will impact him or her in Texas. The attorney will push for the most personally favorable outcome for the individual, given the circumstances surrounding his or her divorce.

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Vernier & Associates, PLLC Vernier & Associates, PLLC

Vernier & Associates, PLLC
2441 High Timbers Drive Suite 110
The Woodlands, TX 77380

Phone: 281-882-3271
Fax: 832-585-0955

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