Am I Entitled to a Portion of My Spouse’s Year End Bonus?

January 23, 2025 | By Gia M. Sacchetta

With all the excitement of ending the year and starting fresh in the new year, it may be easy to overlook the bonus your soon-to-be ex-spouse just received. Depending on the type of bonus, you may be entitled to a portion of the nice chunk of money that just hit the checking account.

Equitable Distribution

Before divvying up your spouse’s bonus, it is important to understand equitable distribution. Equitable distribution is the division of marital assets, which, at surface level, are assets acquired by either spouse during the marriage. 23 Pa.C.S. § 3501(a). This division is one of equity, not equality, and the court takes multiple factors into account to determine what is equitable. See 23 Pa.C.S. § 3502(a).

In order for your spouse’s bonus to be considered marital property, one of the following must apply: either (1) your spouse received the bonus during the marriage, or (2) your spouse received the bonus for work performed during the marriage.

If a spouse’s bonus was awarded for work performed during the marriage, the bonus will typically be considered marital property, even if it was awarded post separation.

However, a different bonus, such as a sign on bonus, that is awarded for work to be performed post separation, is not marital property.

In the event the bonus does not fall into one of the two factors, and is not considered marital property, it can still be considered income for support purposes.

Support

Alimony pendente lite

Alimony pendente lite (APL) is support that one spouse pays to the other until the entry of a divorce decree. APL is calculated using a formula based upon the parties’ net incomes.

Since an end-of-year bonus is usually based on multiple factors, such as employee performance and company performance, it’s common for the end-of-year bonus to differ from year to year. As most family law cases are, determining the income used for support guidelines is fact specific and can be done differently in each case. In some cases, the court will average the last three base salaries and last three bonuses and use that number for the spouse’s income, in other cases the court will use the most recent salary and bonus.

Alimony

Once the divorce is finalized, the independent spouse may be obligated to pay the dependent spouse alimony, as the court deems necessary. Alimony is calculated differently than APL and is determined based on reasonable needs. Alimony is calculated by applying factors under 23 Pa.C.S. § 3701(b) and accounting for the dependent spouse’s reasonable needs less their available income, and the independent spouses income and ability to meet the needs of the dependent spouse. Although different from APL, alimony calculations can also account for a spouse’s bonus as part of said spouse’s income.

BEWARE: Double Dipping

If you are the spouse who received the bonus, it is important to make sure your spouse is not double dipping.

Double dipping can occur if your bonus is considered marital property and is also included in the calculation of your income for support purposes.

For example, your annual salary is $100,000 and you receive a $10,000 bonus at the end of the year. Since your bonus is compensation for your hard work over the year, while you were still married, it is considered marital property and will be divided between the parties, let’s say 60/40, so your spouse ends up receiving $6,000 of your bonus and you keep $4,000. During the litigation, your spouse files for APL and the court runs guidelines to come up with the amount of APL you will have to pay your spouse. In this example, since your bonus is marital property, it would be considered double dipping if it was included in your net income for support calculations.


The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.

About the Authors

Gia M. Sacchetta

Associate

Gia focuses her practice primarily on matrimonial law, including divorce, custody and visitation, support, mediation, adoption, and protection from abuse. Gia enjoys being challenged and solving problems. She is dedicated to supporting...

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