Kim Finkle, MBA, Financial Advisor Having a conflict with your co-parent or partner? - Start Neutral Mediation

Legal Status

• Married: If you are still legally married, your ex may be entitled to a share of your bonus depending on your state's divorce laws and any existing agreements like pre-nuptial agreements. In this case, consulting with a lawyer familiar with family law in your jurisdiction is highly recommended.
• Divorced: If your divorce is finalized and there are no existing agreements regarding income or bonuses, your ex is generally not entitled to a share of your Christmas bonus. This bonus would be considered post-separation income and yours to keep.
• Separated: If you are separated but not officially divorced, the rules can be more complex. Some states might consider bonuses as part of spousal support calculations, while others may not. Again, consulting with a lawyer is crucial to understand your specific obligations.

 

Existing Agreements

• Separation Agreement: If you have a signed separation agreement, it may already spell out how bonuses should be handled. Review the agreement carefully to see if there are any specific clauses relating to holiday bonuses.
• Child Support Order: If you have a child support order, your bonus might be factored into your future child support payments. However, it wouldn't automatically entitle your ex to a direct share of the bonus itself.

 

Recommendations

1. No Sharing Till Divorce / Separation: Tell your ex-partner that you will share the bonus when the divorce/separation is final.  You can say that your attorney has advised you to let the judge make a final decision.
2. Share 50/50: You can be generous.  But make sure that you get a receipt from your ex for the bonus and file it in the court so that you don't get double dinged.  As a matter of fact, you should ask them for receipts for all the monies you have paid her since separation. You should also keep all the bank records.  This will be favorable to you in the family court.
3. Share A Smaller Portion: You can give her a smaller percentage e.g. 10%-20% and tell her to wait for the rest till the divorce/separation is final.  The rule around keeping bank records and asking her for a receipt applies to this situation as well.
4. Set Up A 529 Plan For College Education: You can tell them that you would like the bonus money to go towards kids' education.  If they agree then document the agreement and both of you should sign it in front of a notary.  Keep all the records and open state-approved 529 plans for each of your children.

 

Given the complexities involved, seeking professional legal advice is always the best option when navigating financial matters with an ex. A lawyer can help you understand your rights and obligations in your specific situation and guide you towards a fair and legal resolution.

 

Related:

What is a 529 College Saving Plan?

Co-parenting - How to split expenses with your Ex?

Holiday budgeting for single parents

How to handle money after divorce?

How to handle money during divorce?

 

 

 

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.