Employment Benefits and Divorce

When navigating the divorce process, it’s important to know that your employment benefits are subject to review. This is an especially critical time to understand your benefits because you have a duty to disclose the specifics during the process. Listed below are types of employment benefits which are open for review. They include but are not limited to the following:

  • Health insurance including COBRA and SHIRA options
  • Defined contribution plans such as your 401 (k), 457 (b) or 403 (b) plan
  • Defined benefits plans such as a pension which will provide periodic payments to you in the future
  • Profit sharing plans
  • Stock options, stock grants, performance units or other ownership incentives to keep you at the company
  • Life insurance
  • Commissions and other performance benefits
  • Salary/compensation
  • Performance benefits such as bonus or commission income
  • Expense and travel reimbursements

There are a variety of reasons why these details are relevant. Compensation is relevant to the payment of support including child and spousal support, otherwise known as maintenance. Retirement funds and stock ownership interests are considered property to be divided by the Court. Health insurance is an essential piece of the puzzle. When a marriage is dissolved, one of the parties may lose health insurance if it was previously provided through the spouse’s employer. It is critical to consider the best option for insurance for you and your children. As such, health insurance costs play an important role in the negotiations of Divorce. Life insurance is required by the Court as security for child support and is often required for the security of maintenance payments as well. Overall, you should expect all aspects of your employment and related benefits to be scrutinized during the Divorce process.

We stress the importance of taking time to research your benefits. Understanding these benefits can save you a lot of time and money in the future. We offer free consultations regarding divorce, and we are more than willing to review your benefits with you and discuss the impact they may have on your case.

 

This is a legal advertisement from Sterk Family Law Group. It does not constitute legal advice and should not be construed as such. This article is for informational and educational purposes only.

Recent Posts

Is Adult Guardianship an Option for Your Child?

As a parent, ensuring the well-being of your child is a lifelong commitment. For some parents, this includes making decisions about adult guardianship when their child reaches the age of 18. In Illinois, there are specific laws and guidelines that can help you...