IS A BONUS CONSIDERED WHEN CALCULATING ALIMONY?
IS A BONUS CONSIDERED WHEN CALCULATING ALIMONY?

A client came into my Brentwood, TN office today and asked if her husband's annual bonus will be included in the alimony calculation.  I explained his annual salary will be included.  However, it is important to understand, her husband will pay taxes on his bonus so, the net bonus is considered in the alimony calculation.  Also, his annual bonus like many bonuses is not guaranteed but, is dependent upon company performance and other factors.  So, the monthly alimony needs to reflect his salary and she could receive an annual payment when/if he earns his bonus.

If you are divorcing and an alimony candidate, it is important that you understand this and other nuances of alimony.  After you understand the financial issues, you will be more calm and cinfident.