Beware cash payments in lieu of sharing a deferred bonus

Those individuals in the process of negotiating a financial settlement upon divorce should be mindful of sharing the risk/liquidity associated with various assets.

For example, if too much safer capital, like cash savings, is paid in lieu of any share of deferred bonuses, it is important to be mindful that the value of deferred bonuses can fall or be lost altogether if the relevant employee leaves.

Once a financial order is made by the Family Court, it is purposefully very difficult to revisit the order’s fundamental terms. Therefore, it is vitally important to assess the risk structure of any draft final order, and consider the overall quantum.