Arizona is a community property state, meaning marital assets must be divided in a manner that is fair and equitable, though not always a perfect 50/50 split. In high-asset cases, many spouses work with a Chandler divorce lawyer to navigate complex financial issues—especially when executive compensation is involved.
During an Arizona divorce, both spouses must provide full financial disclosure. While each spouse may keep their separate property, all marital assets are subject to division. This process can be relatively simple for couples with limited assets, but it becomes significantly more complicated when one or both spouses hold executive-level positions with sophisticated compensation packages.
Separate assets are those that belonged to one spouse before their marriage or assets inherited by or gifted to one spouse alone during the marriage. Each spouse may retain their separate assets during the divorce.
Under Arizona 25-211, the marital assets subject to division are all assets, accounts, and real estate acquired during the divorce, regardless of whose name is on the account, title, or deed. This is often the most hotly contested process of a divorce, particularly in high-asset marriages.
In some cases, a spouse may have the right to claim a portion of the increased value of the other spouse’s separate asset if they spent time, talent, or money improving its worth, or if they’ve had access to a spouse’s investment and bank accounts.
When divorcing spouses in Arizona have complex, high-value assets, it often requires financial forensic expert analysis to assert each spouse’s right to their fair share of marital assets, including executive compensation.
Upper-level management in companies and corporations, such as CEOs, presidents, vice presidents, and chief executives, often receive executive compensation as a company benefit. This refers to various forms of financial compensation and benefits packages provided to high-level managers. Executive compensation may include bonuses, stock options, restricted stock options (RSOs), performance shares, and long-term incentive plans.
Executive compensation packages may be considered divisible marital property in Chandler divorce cases, but complex issues often arise in their valuation, making it unclear whether they are separate or marital assets depending on past vs. future awards, vesting schedules, and market conditions.
Financial forensics experts are essential in the process of determining whether an executive’s compensation package is part of the spouses’ marital property. Because the details of executive compensation packages are not part of standard tax returns or pay stubs, the high-level executive may be the only one privy to them, making the discovery process especially challenging. The discovery and valuation process for executives may require deep financial probes to compel transparency during asset division.
Dividing complex marital assets from diverse portfolios, including executive compensation packages, requires skilled legal counsel with knowledge of sophisticated financial valuation processes, complex tax law, and access to financial forensics specialists. Executive divorces require a strategic approach with meticulous attention to detail during the discovery process, asset valuation, and negotiations for a divorce settlement agreement.
Call or contact Wilson Goodman Law Group, PLLC, online to learn more about how an experienced Chandler family law lawyer can help you with complex marital asset division in a Chandler divorce, including divorces involving executive compensation packages.
