Compensation packages

As an employee you're employer may have a number of ways in which they compensate you. That might be a combination of any of the below:

• Base Pay / Salary
• Commission
• Overtime Pay
• Bonuses / Profit Sharing / Merit Pay
• Stock Options / Restricted Stock / Restricted Stock Units (RSU) - vested and not vested
  
• Travel / Meal / Housing Allowance
• Medical / Dental / Life Insurance
• Retirement Assets
  

Many professionals receive a major part of their salary in the form of a bonus, some form of stock interest and or retirement savings plans. As such, these are a significant consideration in a divorce and must be addressed in the right way. It can affect the size of the assets in the divorce as well as child and spousal support obligations.

Retirement assets are subject to equitable distribution. These include both defined benefit and defined contribution retirement plans. There are different types of defined benefit plans which promise a specific monthly benefit at retirement. With defined contribution plans an employee or an employer (or possibly both) contribute money to the employee's individual account. Examples would be 401(k), 403(b), 457 plan, Simplified Employee Pension Plan (SEP), Employee Stock Ownership Plan (ESOP), Profit Sharing Plan or Stock Bonus Plan