Executive compensation refers to the total package of pay and benefits that a company provides to its top-level employees. This includes salary, bonuses, stock options and other forms of compensation. If you’re a high-level Connecticut executive, divorce can have a big impact on your compensation, but there are things that you can consider when negotiating your settlement to try to minimize the impact.
Find out the true value of your compensation package
For instance, stock options may not be worth as much as you think they are if the company’s stock price is down. On the other hand, if you have a lot of deferred compensation, it may be worth more than you think because it is not subject to immediate taxation. Consider having a professional appraise the value of your compensation so that you know what you’re actually getting in the divorce.
You may not be able to keep all of your benefits
If you have a health insurance plan through your company, for example, you may lose that coverage after divorce. Be prepared to negotiate for other types of benefits, like the continued use of the company gym or parking spot, in lieu of health insurance.
The divorce may impact your ability to get a job in the future
If you have a non-compete clause in your employment contract, divorce could impact your ability to get another job in the same industry. This is especially true if your divorce is contentious. You can mitigate this by negotiating for a buyout of the non-compete clause or for permission to work in a different industry.
If you want to keep your current lifestyle after divorce, you need to be prepared to negotiate for it. This means being realistic about what you can get and ask for what you need. Take enough time to understand the value of your compensation package and what you’re actually willing to give up in the divorce. With the right approach, you can boost your chances of coming out of the divorce with your financial security intact.