The Court will strive to divide assets between separating spouses fairly and will take into account a list of relevant factors, including: the age of each party, their earning capacities and future earning capacities / income resources, the financial needs of each party, the standard of living enjoyed throughout the marriage, the contributions of each party to both the assets and the family welfare, and any physical needs or disabilities.

The Court have a discretionary power as to how to divide assets whilst taking the list of factors into account. The factors are set out in section 25 of the Matrimonial Causes Act 1973.  The sharing of bonuses (and future bonuses) can be considered when spouses divorce with reference to fairness and the section 25 criteria.

Before sharing of an annual bonus can be considered, its important to have full financial disclosure so that the nature of the asset can be determined. There will be many facts to establish such as:  is the bonus paid in cash or equity?  Is it discretionary or contractual?  Is the bonus performance based or guaranteed?  Are there any claw-back provisions that the bonus may need to be repaid in some circumstances?

Once the nature of the arrangement is fully understood then the various options available can be navigated. There is no one-size fits all solution.

If a bonus has already been received during the marriage then it would ordinarily be expected for this asset to be shared. Future bonuses that are received post-separation can be shared but would need to be justified as to why sharing this future asset would be fair and/or required to meet financial needs. The law in this area is highly discretionary and it will either be a matter for negotiation between the parties or subject to the Court making a decision. Our expert family solicitors will be able to assist if you find yourself in this situation.  

If you require any further assistance, or wish to book in for an initial consultation to discuss your situation, our family solicitors are based in both Wolverhampton, Cradley Heath and Sutton Coldfield serve clients across the West Midlands. For all new enquiries, please call 01902 328 355 or complete our online enquiry form and a member of our team will respond.