When going through a divorce, it’s necessary to divide marital property. This often means any income that was earned by the couple during the marriage. Even if both people are independently employed, their income may jointly qualify as a marital asset, so it has to be divided.
But what exactly qualifies as marital income? It’s important not to overlook anything, so let’s look at a few key examples below.
Standard wages
First of all, it starts with each person’s wages. They may be paid hourly, they could be on a salary or they may simply be paid by the job on a contractual basis. This also includes any overtime wages.
Additional payments
Many people work in industries where they earn commissions or bonuses. They may get a one-time payment along with a promotion. Any of these additional payments also count as wages that were earned at the business.
The increase in value
For small business owners, they often have to look at the increase in value of the business itself. That business may be a marital asset, so this increased value isn’t necessarily income in the same way that a paycheck is, but both people may have to split up the higher value.
Other types of earnings
Finally, remember that it’s not necessarily just income that you have to consider. You may have an investment portfolio that has increased in value. You may have won money gambling or betting on sports. Any earnings may qualify as marital property.
Dividing this property can certainly become contentious for some couples, so it’s important to understand exactly what legal steps to take at this time.