Are bonuses considered marital property in Illinois divorce?

Yes, bonuses earned during the marriage are generally considered marital property subject to division under Illinois law (750 ILCS 5/503). The key factor is when the bonus was earned, not when it was paid—if the work generating the bonus occurred during the marriage, it's typically marital property. When dividing bonus commission divorce Illinois courts apply equitable distribution principles, meaning the bonus will be divided fairly but not necessarily 50/50. Courts examine factors like each spouse's contribution to the marriage, the duration of the marriage, and each party's economic circumstances when determining how to divide bonus income.

How are sales commissions divided in an Illinois divorce?

Sales commissions earned during the marriage are treated as marital income and are subject to equitable distribution under 750 ILCS 5/503. Illinois courts will analyze when the commission was earned—if the sale closed during the marriage, the resulting commission is marital property even if payment comes later. For bonus commission divorce Illinois cases involving ongoing sales relationships, courts may need to trace which portions of commissions relate to marital efforts versus post-separation work. The division typically considers factors like whether one spouse supported the other's career development and the overall financial picture of both parties.

Is a bonus earned during marriage but paid after divorce considered marital property in Illinois?

Under Illinois law, a bonus earned during the marriage but paid after the divorce is typically still considered marital property subject to division. Courts focus on when the bonus was earned through the spouse's labor and efforts, not when the check was actually received. In bonus commission divorce Illinois proceedings, judges will examine the bonus structure to determine what portion, if any, relates to work performed during the marriage. This analysis can become complex with year-end bonuses or performance bonuses that span the separation date, often requiring forensic accounting to properly allocate marital versus non-marital portions.

How do Illinois courts value future bonuses in divorce proceedings?

Illinois courts use several methods to value future bonuses in divorce, including examining historical bonus patterns, employment contracts, and industry standards. Under 750 ILCS 5/503, courts may either assign a present value to anticipated future bonuses or retain jurisdiction to divide them as they're received. In bonus commission divorce Illinois cases, judges often consider the consistency of past bonuses—if a spouse has received substantial bonuses for several consecutive years, courts are more likely to factor expected future bonuses into the property division. When future bonuses are speculative or contingent on uncertain performance, courts may be reluctant to assign them a current value and instead address them through maintenance provisions or reserved jurisdiction.

Are stock options and RSUs considered bonuses in Illinois divorce cases?

Stock options and Restricted Stock Units (RSUs) are treated as a form of deferred compensation similar to bonuses under Illinois divorce law and are subject to equitable distribution per 750 ILCS 5/503. The classification depends on their purpose—options granted as incentive for past performance are typically marital property, while those meant to encourage future retention may be partially non-marital. In bonus commission divorce Illinois matters, courts often use coverture fractions to determine the marital portion of unvested stock awards. The valuation date and vesting schedule are critical factors, and Illinois courts have discretion in determining whether to divide these assets at the time of divorce or as they vest in the future.

Does bonus income affect child support calculations in Illinois?

Yes, bonus income is included in gross income for Illinois child support calculations under 750 ILCS 5/505. Illinois uses an income shares model that considers both parents' total income, including regular bonuses and commissions, to determine support obligations. In bonus commission divorce Illinois cases, courts may average bonus income over several years if it fluctuates significantly, or they may order a percentage of future bonuses to be paid as additional child support. Parents receiving variable income like bonuses may also be required to provide annual income verification, with support adjustments made accordingly when bonus income substantially increases or decreases.

How are retention bonuses handled during an Illinois divorce?

Retention bonuses present unique challenges in Illinois divorce because they're designed to keep an employee at a company for a future period, blending past service recognition with future employment incentives. Illinois courts typically use a time-rule approach to allocate the marital versus non-marital portions of retention bonuses under 750 ILCS 5/503. In bonus commission divorce Illinois proceedings, the marital portion is usually calculated based on the ratio of time married during the retention period to the total retention period. If a retention bonus is paid entirely for future services after separation, it may be considered non-marital property, but courts examine the specific terms of each retention agreement carefully.

Can I protect my bonus from division in an Illinois divorce?

The most effective way to protect bonuses in an Illinois divorce is through a valid prenuptial or postnuptial agreement that specifically addresses bonus income as separate property under 750 ILCS 5/503. Without such an agreement, bonuses earned during marriage are presumptively marital property and subject to division. In bonus commission divorce Illinois cases, you may be able to argue that certain bonuses are non-marital if they were earned entirely before the marriage or after legal separation, but this requires clear documentation. Attempting to hide bonuses or manipulate their timing can result in serious legal consequences, including sanctions and an unfavorable property division.

How are signing bonuses treated in Illinois divorce?

Signing bonuses received during the marriage are generally considered marital property in Illinois, even though they're tied to future employment. Under 750 ILCS 5/503, courts view signing bonuses as compensation that was received during the marriage and thus subject to equitable distribution. However, in bonus commission divorce Illinois cases, if the signing bonus includes a repayment clause requiring return of funds if employment ends within a certain period, courts may consider this contingent liability when determining how to divide the asset. If a signing bonus is received shortly before or after the divorce filing, courts will closely examine the timeline and employment circumstances to determine the appropriate classification and division.

What documentation do I need for bonus and commission issues in my Illinois divorce?

For bonus commission divorce Illinois proceedings, you should gather several years of tax returns, pay stubs showing bonus and commission payments, employment contracts, bonus plan documents, and any correspondence about expected future compensation. Under Illinois discovery rules related to 750 ILCS 5/501, both parties are required to make full financial disclosure, including all forms of variable income. Having historical bonus data for at least three to five years helps courts identify patterns and calculate averages for support and property division purposes. If your spouse controls the bonus documentation, your attorney can subpoena records directly from employers or use other discovery tools to ensure complete financial transparency in your case.

Bonuses & Commissions in Illinois Divorce: How Courts Divide Variable Income

That $250,000 bonus you just earned? Your spouse's attorney is already calculating their client's share. In Illinois, variable compensation—bonuses, commissions, stock awards, and incentive pay—creates some of the most contentious battles in high-net-worth divorce. The reason is simple: these aren't just numbers on a paycheck. They represent years of relationship-building, deals in progress, and future earning potential that both spouses may have legitimate claims to.

I've handled hundreds of cases involving complex compensation structures, from Goldman Sachs managing directors to pharmaceutical sales executives to tech founders with multi-year vesting schedules. The difference between keeping $500,000 and losing it often comes down to understanding exactly how Illinois courts analyze variable income—and knowing which arguments actually work.

Here's the comprehensive guide to protecting your bonus and commission income in an Illinois divorce.

The Illinois Framework for Dividing Variable Compensation

Under the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503), courts must first classify property as either marital or non-marital before dividing it. This classification question becomes extraordinarily complex when applied to variable compensation because bonuses and commissions don't fit neatly into either category.

The Marital Property Presumption

Illinois law presumes that all property acquired during the marriage is marital property, regardless of whose name appears on the check. Under 750 ILCS 5/503(a), marital property includes "all property, including debts and other obligations, acquired by either spouse subsequent to the marriage." This presumption creates an immediate challenge for the high-earning spouse: your bonus is presumptively subject to division unless you can prove otherwise.

But here's where it gets complicated. The statute also provides that property is non-marital if it was acquired "in exchange for property acquired before the marriage or in exchange for property acquired by gift, legacy or descent." This exchange principle becomes critical when analyzing whether a bonus truly represents compensation earned during the marriage or the culmination of pre-marital efforts.

The "When Earned" vs. "When Received" Debate

Illinois courts have consistently held that the timing of receipt is not determinative. What matters is when the compensation was earned. In In re Marriage of Wojcik, the court established that bonuses paid after the marriage dissolution can still be marital property if they were earned during the marriage. Conversely, bonuses received during the marriage may be partially non-marital if they compensate for pre-marital efforts.

This creates a critical distinction that many attorneys miss: a bonus announced on December 15th but paid on January 15th after your divorce was finalized may still be 100% marital property. The date on the check is nearly irrelevant—what matters is the work that generated it.

Pro Tip: Document the specific time period your bonus covers. If your employer's bonus plan documents state the bonus compensates for "calendar year 2024 performance," that's powerful evidence for classification purposes. Request this documentation from HR before your divorce proceedings begin.

The Equitable Distribution Standard

Once classified as marital property, variable compensation is subject to Illinois's equitable distribution standard under 750 ILCS 5/503(d). Courts consider numerous factors including the duration of the marriage, each spouse's contribution (including homemaking), the value of property assigned to each party, and the economic circumstances of each spouse. Equitable doesn't mean equal—it means fair under the circumstances.

Key Takeaway: Illinois law looks at when compensation was earned, not when it was paid. A bonus paid after divorce can be marital property, and a bonus received during marriage can be partially non-marital. Documentation of the earning period is essential.

How Courts Analyze Different Types of Bonuses

Not all bonuses are created equal under Illinois law. The type of bonus significantly impacts both classification and division methodology. Understanding these distinctions can mean the difference between a 50/50 split and keeping most of your compensation.

Performance Bonuses: The Most Contested Category

Annual performance bonuses tied to individual or company metrics are the most commonly litigated form of variable compensation. Illinois courts typically apply a time-based allocation formula: if you received a $200,000 bonus for 2024 performance but you separated on July 1, 2024, approximately half of that bonus (representing January through June) would be classified as marital.

However, this simple pro-rata approach doesn't capture the full complexity. Consider this scenario: You're a senior investment banker who closed a transformational deal in March 2024 that generated 80% of your bonus pool. You separated in October. Should your spouse receive 83% of that bonus (10/12 months) when the overwhelming majority of the value-creating work occurred in Q1?

Illinois courts have discretion to deviate from strict time-based allocations when the evidence demonstrates that compensation was disproportionately earned during a specific period. This requires detailed documentation of deal flow, client relationships, and performance metrics throughout the year.

Discretionary Bonuses: The Wild Card

Purely discretionary bonuses—where your employer has no contractual obligation to pay anything—present unique challenges. Because the amount isn't guaranteed, some attorneys argue they shouldn't be valued as highly as guaranteed compensation. Courts generally reject this argument, treating discretionary bonuses as marital property when they follow a consistent historical pattern.

In In re Marriage of Schneider, the Illinois Appellate Court held that even discretionary bonuses can be marital property subject to division. The court noted that when bonuses are regularly and consistently paid, they become part of the marital estate regardless of their technically discretionary nature.

Retention Bonuses: The Timing Trap

Retention bonuses deserve special attention because they're designed to compensate future service. If your employer pays you a $500,000 retention bonus in Year 1 conditioned on staying through Year 3, Illinois courts will typically allocate that bonus over the entire retention period—not classify it entirely as marital property upon receipt.

This creates planning opportunities and pitfalls. If you receive a retention bonus during marriage but the retention period extends beyond your divorce, you may be able to argue that a portion represents non-marital compensation for post-divorce services. The key is the specific language in your retention agreement.

Warning: Don't assume your employer's retention bonus is structured favorably for divorce purposes. Many retention agreements are deliberately vague about the "earning period" to give employers flexibility. Review your agreement with both employment counsel and your divorce attorney before making assumptions about classification.

Signing Bonuses: The Pre-Marital vs. Marital Split

Signing bonuses are typically treated as compensation for agreeing to join a company, not for future services. In Illinois, a signing bonus received during marriage is generally marital property. However, if the signing bonus came with clawback provisions requiring repayment if you leave within a certain period, courts may treat the portion subject to clawback differently.

Consider this example: You received a $300,000 signing bonus in Year 1 with a three-year clawback provision that decreases by $100,000 annually. At the time of divorce in Year 2, $100,000 of that bonus is still subject to clawback. Courts may treat the $200,000 "earned" portion as marital property while accounting for the contingent nature of the remaining $100,000.

Key Takeaway: The type of bonus matters significantly. Performance bonuses use time-based allocation, retention bonuses are spread over the retention period, and signing bonuses are evaluated based on clawback provisions. Know your bonus structure inside and out.

Commission Income: Special Rules for Sales Professionals

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Commission-based compensation presents unique challenges because the line between "earned" and "received" is particularly blurry. When you spend months building a client relationship, close a deal the week before divorce, but don't receive the commission for 90 days, who owns that money?

The Pipeline Problem

Sales professionals often have extensive "pipelines" of deals in various stages of completion. Illinois courts have developed approaches to value these pipelines as marital assets even when the commissions won't be paid until after divorce. The analysis typically involves:

Deal stage analysis: A deal at 90% close probability is valued differently than one at 10%
Historical conversion rates: Your track record of converting pipeline to closed deals
Time-based allocation: Determining what portion of relationship-building occurred during marriage
Post-separation contribution: Accounting for work needed to close deals after separation

In complex cases, forensic accountants may be needed to properly value the commission pipeline. This is especially true in industries with long sales cycles, such as enterprise software, commercial real estate, or medical devices.

Trailing Commissions and Residuals

Insurance agents, financial advisors, and certain sales professionals receive trailing commissions on accounts they've established. These residuals can continue for years or even decades after the initial sale. Illinois courts have held that trailing commissions are marital property to the extent they derive from relationships and policies established during the marriage.

The challenge is valuation. A book of business generating $150,000 in annual residuals might be worth $500,000 or $1,500,000 depending on assumptions about client retention, growth rates, and discount factors. Retaining a qualified business valuator is essential in these cases.

Draw vs. Commission Structures

Many commission-based employees receive draws (guaranteed minimum payments) against future commissions. This creates accounting complexity because draws are typically recouped from future commission earnings. If you're carrying a significant negative draw balance at divorce, this debt may offset the value of your commission income for division purposes.

Pro Tip: If you're a commissioned salesperson facing divorce, obtain detailed statements showing your draw balance, pipeline value, and historical close rates for at least the past three years. This data is essential for proper valuation and prevents your spouse from overvaluing future commissions.

Key Takeaway: Commission income requires analyzing both closed deals and pipeline opportunities. Trailing commissions are particularly complex because they represent an ongoing income stream that must be valued and divided. Professional valuation is usually necessary for significant commission-based compensation.

Equity Compensation: Stock Options, RSUs, and Performance Shares

Equity-based compensation has become the dominant form of incentive pay in technology, pharmaceutical, and financial services industries. These instruments are notoriously complex to divide because they combine features of both compensation and investment—and Illinois courts have developed specific frameworks to address them.

Stock Options: The Coverture Fraction Approach

Illinois courts typically apply a "coverture fraction" to allocate stock options between marital and non-marital property. The basic formula is:

Marital Portion = (Months from grant to separation) / (Total months from grant to vesting) × Number of shares

For example, if you received 10,000 options on January 1, 2022, with a four-year vesting schedule, and you separated on January 1, 2024, exactly half of those options (5,000) would be classified as marital property. The remaining 5,000 would be your separate property because they vest based on post-separation service.

This approach aligns with Illinois precedent and follows the reasoning established in the landmark In re Marriage of Hattis case, which recognized that unvested stock options represent compensation for both past and future services.

RSUs: Similar Treatment, Different Details

Restricted Stock Units follow similar allocation principles but with important distinctions. RSUs represent actual shares (not options to purchase shares), so their value is more straightforward to calculate. However, performance-based RSUs that vest only upon achieving specific metrics create additional complexity.

For performance RSUs, courts must determine the probability of vesting and the likely payout level. A grant of 10,000 RSUs that could vest at 0% to 200% depending on company performance requires expert analysis to value properly. Many courts will use the "target" vesting level (100%) unless evidence suggests a different outcome is more probable.

The Cryptocurrency Connection

Increasingly, technology companies are granting equity compensation that includes or is denominated in cryptocurrency. If you're receiving tokens, protecting digital assets, or crypto-based bonuses, the analysis becomes even more complex. You'll want to work with an attorney who understands both traditional equity compensation and cryptocurrency in divorce to ensure proper classification and valuation.

Pro Tip: Create a comprehensive spreadsheet of all equity grants, including grant dates, vesting schedules, exercise prices (for options), and current values. Update this monthly during your divorce. This document becomes essential for accurate allocation using the coverture fraction and prevents disputes over basic facts.

Key Takeaway: Equity compensation is divided using the coverture fraction, which allocates options and RSUs based on the proportion of the vesting period that occurred during marriage. Performance-based awards require additional analysis regarding vesting probability and payout levels.

Valuation Methods for Future and Contingent Compensation

One of the most contentious issues in high-net-worth divorce is valuing compensation that hasn't been received yet—and might never be. Illinois courts have developed several approaches, each with advantages and disadvantages.

The Immediate Offset Method

Under this approach, the value of future compensation is calculated at divorce and offset against other marital assets. If your unvested equity is worth $500,000 (accounting for vesting probability and time value of money), your spouse might receive an additional $250,000 of other marital assets in exchange for releasing claims to the equity.

Advantages: Creates a clean break, eliminates ongoing financial entanglement, and allows both parties to move on.

Disadvantages: Requires accurately predicting future values, may overcompensate the non-employee spouse if compensation doesn't vest, and ties up liquidity in the present.

The Deferred Distribution Method

This approach delays division until the compensation is actually received. Your spouse receives their share of each payment as it comes in. For a four-year vesting schedule, this might mean quarterly payments to your ex-spouse over four years.

Advantages: Eliminates valuation guesswork, protects against forfeiture risk, and preserves liquidity.

Disadvantages: Creates ongoing financial entanglement, requires tracking and reporting, and may create tax complications.

The Reserve Jurisdiction Method

Courts can retain jurisdiction over specific assets for future determination. This hybrid approach allows the divorce to proceed while reserving decision-making authority over contingent compensation. It's particularly useful when significant uncertainty exists about vesting, payment amounts, or timing.

Real-World Scenario: The Tech Executive Divorce

Consider Sarah, a Vice President at a pre-IPO technology company. She has 200,000 unvested stock options with a strike price of $5.00. The company hasn't gone public, so there's no market price. After separation, she files for divorce.

Valuing Sarah's options requires determining the company's fair market value (typically through a 409A valuation), applying the coverture fraction to identify the marital portion, and then accounting for vesting probability and time value of money. If the company is valued at $20 per share, her options have an intrinsic value of $3 million ($15 spread × 200,000 shares). But if only 60% is marital and there's a 30% probability of forfeiture before vesting, the marital value might be closer to $1.26 million.

And that's before considering whether Sarah should offset this value with other assets or defer distribution until the options are exercised.

Key Takeaway: Three main valuation approaches exist—immediate offset, deferred distribution, and reserve jurisdiction. The right choice depends on liquidity needs, risk tolerance, and the specific characteristics of the compensation involved. Many divorces use a combination of approaches for different types of compensation.

How Variable Income Affects Support Obligations

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Beyond property division, bonuses and commissions significantly impact both child support and spousal maintenance calculations. Illinois law specifically addresses variable income in support contexts.

Child Support and Variable Compensation

Under the Illinois Income Withholding for Support Act and the standardized child support guidelines (750 ILCS 5/505), child support is calculated based on "net income," which explicitly includes bonuses, commissions, and other forms of variable compensation. Courts typically average variable income over a three-year period to smooth out year-to-year fluctuations.

Here's where it gets tricky: if a bonus is divided as marital property, should it also be included in income for support purposes? Generally, no—courts avoid "double-dipping" by excluding the divided portion from income calculations. However, the ongoing, recurring nature of bonuses may still be considered even if a specific bonus was divided.

Spousal Maintenance Considerations

Illinois's maintenance guidelines under 750 ILCS 5/504 similarly incorporate variable compensation into income calculations. The formula uses "gross income" from all sources, which includes bonuses, commissions, and other irregular payments. Courts typically use historical averages but have discretion to adjust for anticipated changes in income.

This creates strategic considerations. If you're the higher earner expecting a significant bonus, agreeing to maintenance terms before the bonus is paid might lock in a lower payment. Conversely, if your income has been declining, demonstrating the downward trend can reduce ongoing maintenance obligations.

Modification and Bonus Windfalls

What happens if you receive a massive bonus after divorce? Under Illinois law, substantial changes in income can justify modification of both child support and maintenance. However, a single exceptional bonus may be treated differently than sustained income increases. Courts have discretion to consider whether the change is likely to be recurring or is a one-time event.

Pro Tip: If you're negotiating maintenance and your income varies significantly, push for maintenance that adjusts automatically with income (sometimes called a "Koh formula" after a leading case). This prevents costly modification litigation every time your bonus fluctuates significantly.

Key Takeaway: Variable compensation affects both property division and support obligations, but courts generally avoid double-counting the same dollars. Historical averaging is standard for support calculations, and automatic adjustment provisions can reduce future litigation over fluctuating income.

Strategies for Protecting Your Variable Compensation

While you can't make marital property disappear, legitimate strategies exist to protect your financial interests when facing divorce with significant variable compensation.

Documentation Before Separation

The single most important step is documenting everything before separation. This includes:

All equity grant agreements with vesting schedules
Bonus plan documents and performance criteria
Historical bonus and commission payments for at least five years
Pipeline reports and deal status as of specific dates
Performance reviews and metrics that justify your compensation

This documentation establishes the factual record that will drive classification and valuation decisions. Without it, courts may accept your spouse's characterization of your compensation.

Timing Considerations

Illinois uses date of separation—not filing date or divorce finalization—as the key cutoff for marital property classification. Understanding your bonus cycle can inform timing decisions. Filing for divorce three months before your annual bonus is paid versus three months after creates dramatically different financial outcomes.

This isn't about hiding assets—that's illegal and will backfire. It's about understanding how classification rules work and making informed decisions about timing.

Asset Protection Structures

For future compensation, certain planning structures can provide protection. Trusts established with proper formalities may shield future bonus income from divorce claims—though Illinois courts closely scrutinize trusts created during marriage. Understanding how trusts interact with marital property laws is essential before implementing any asset protection strategy.

Negotiation Leverage Points

In settlement negotiations, variable compensation creates unique leverage. The uncertainty inherent in future bonuses and equity vesting creates risk for both parties. The employee spouse faces forfeiture risk; the non-employee spouse faces collection risk. Creative settlements can allocate these risks efficiently—for example, trading a guaranteed cash payment now for releasing claims to uncertain future compensation.

Warning: Do not defer or redirect compensation to avoid divorce division. Courts have extensive discovery powers and can impute income, impose sanctions, and award additional property to your spouse if they discover manipulation. Modern digital forensics services makes concealment extremely difficult—and the consequences of getting caught are severe.

Key Takeaway: Protection starts with documentation and understanding classification rules. Legitimate planning can improve your outcome, but attempting to hide or manipulate compensation will likely result in worse outcomes than honest disclosure.

Frequently Asked Questions About Bonuses and Commissions in Illinois Divorce

Are bonuses marital property in Illinois?

Yes, bonuses earned during the marriage are generally classified as marital property in Illinois, regardless of when they are paid. Under 750 ILCS 5/503, marital property includes all property acquired during the marriage. The critical question is when the bonus was earned, not when the check was deposited. A bonus paid in January 2025 for 2024 performance is marital property if you were married throughout 2024, even if you divorced in December 2024. Courts will apply a time-based allocation formula if the earning period spans both married and separated periods.

How are commissions divided in divorce?

Commissions are divided based on when the underlying work was performed, not when the commission is paid. Illinois courts analyze the sales cycle, client relationship development, and deal closing process to determine the marital portion. For commissions in the pipeline at separation, courts may use probability-weighted valuations based on deal stage and historical close rates. Trailing commissions from clients acquired during marriage are typically classified as marital property even when paid years after divorce, requiring valuation as an ongoing income stream.

Is a bonus earned during marriage but paid after divorce marital property?

Yes. Illinois courts consistently apply the "when earned" principle rather than "when received." In In re Marriage of Wojcik, the court affirmed that the timing of payment doesn't control classification. A bonus for 2024 performance paid in March 2025 after your divorce finalized is marital property if you were married during 2024. This principle also applies to retention bonuses, performance awards, and equity vesting. Your divorce decree should specifically address pending compensation to avoid enforcement disputes.

How do courts value future bonuses?

Courts use several methods to value future bonuses, depending on their certainty and structure. For recurring performance bonuses, courts typically average historical payments over three to five years and apply present value discounts. For contingent bonuses tied to specific milestones, courts may use probability-weighted valuations or reserve jurisdiction until the amounts are determined. Expert testimony from forensic accountants or compensation specialists is common in cases involving significant future bonus exposure. Courts also consider forfeiture risk and the earning spouse's expected tenure.

Are stock options and RSUs considered bonuses?

Technically, stock options and RSUs are equity compensation rather than bonuses, though they serve similar incentive purposes and are divided using related principles. Illinois courts apply the coverture fraction formula to allocate options and RSUs between marital and non-marital portions based on the vesting period. The key distinction is that equity compensation requires additional analysis regarding exercise timing, tax treatment, and potential forfeiture. Performance-based RSUs that vest at variable levels depending on company performance require additional valuation analysis.

Does bonus income affect child support?

Yes, bonus income is included in the calculation of child support obligations under 750 ILCS 5/505. Illinois defines "net income" for child support purposes broadly to include bonuses, commissions, and other variable compensation. Courts typically average variable income over a multi-year period to establish a baseline. However, courts generally avoid "double-dipping"—if a specific bonus was divided as marital property, that same payment shouldn't also increase support obligations. Ongoing bonus income that wasn't specifically divided remains part of the support calculation.

How are sales commissions handled in divorce?

Sales commissions receive detailed analysis focusing on the sales cycle timeline, client relationship development, and compensation structure. Courts examine when client relationships were established, when deals progressed through various stages, and when the earning activities occurred relative to separation. Commission pipelines—deals not yet closed—are valued using probability assessments and historical close rates. For sales professionals with established books of business generating trailing commissions, courts may treat the client relationships as divisible assets requiring business valuation.

What about retention bonuses during divorce?

Retention bonuses are allocated over the entire retention period rather than classified entirely when received. If you receive a $300,000 retention bonus in Year 1 conditioned on remaining employed through Year 3, courts will spread that compensation over the three-year period for classification purposes. The marital portion is the proportion of the retention period that occurred during marriage. If you separated in Year 2, approximately two-thirds would be marital property. Clawback provisions requiring repayment upon early departure may reduce the value assigned for division purposes.

Can I protect my bonus in divorce?

Legitimate protection strategies exist but require advance planning and honest disclosure. Prenuptial or postnuptial agreements can classify future bonuses as separate property if properly drafted. Proper documentation of the earning period can ensure accurate classification. Choosing deferred distribution over immediate offset may protect against forfeiture risk. However, attempting to hide, defer, or redirect compensation to avoid division is illegal and will result in severe penalties including sanctions, adverse inference instructions, and disproportionate property awards. The best protection is thorough documentation and sophisticated legal representation.

How are signing bonuses treated?

Signing bonuses are generally treated as compensation for accepting employment rather than for future services, making them marital property if received during the marriage. However, clawback provisions modify this analysis. A signing bonus subject to clawback if you leave within three years may be partially contingent—courts will consider the portion "earned" at separation versus the amount still subject to repayment. If you're planning a job change during pending divorce, the timing and structure of signing bonuses can significantly impact your property division outcome.

Your Next Steps

If you're facing divorce with significant variable compensation, time is your most valuable asset. The decisions made in the first weeks of separation—particularly around documentation, timing, and strategy—will shape your financial outcome for years.

Immediate actions you should take:

Gather documentation: Collect all equity grant agreements, bonus plan documents, commission statements, and performance records for the past five years.
Map your compensation timeline: Create a detailed calendar showing grant dates, vesting dates, bonus payment dates, and performance periods.
Calculate your pipeline: Document all pending deals, trailing commissions, and unvested equity with current values and vesting probability.
Engage qualified experts: Variable compensation cases require attorneys experienced in complex property division and often forensic accountants for valuation.
Understand your opponent: If your spouse also has variable compensation, their bonus structure may create settlement opportunities.

The complexity of bonus and commission division in Illinois divorce demands experienced legal guidance. Courts have broad discretion in both classification and division decisions, meaning the strength of your arguments—and the quality of your documentation—directly impacts your financial outcome.

Don't let uncertainty cost you hundreds of thousands of dollars. Whether you're the high-earning spouse protecting your compensation or the non-earning spouse ensuring fair division, understanding these rules is the first step toward protecting your financial future.