Chicago Divorce Lawyer Russell D. Knight Releases New Article on Bonus Income and Divorce in Illinois

Chicago divorce lawyer Russell D. Knight (https://rdklegal.com/bonus-income-and-divorce-in-illinois/) from the Law Office of Russell D. Knight has published a detailed article titled "Bonus Income and Divorce in Illinois." This article aims to shed light on the complexities surrounding bonus income in the context of divorce, providing crucial information for individuals going through this challenging process in the state of Illinois.

In the article, Chicago divorce lawyer Russell D. Knight discusses how financial assets and incomes, including bonuses, are handled during a divorce. He emphasizes that while regular income is straightforward to manage, bonuses present unique challenges. "Money comes in regular allotments every two weeks, but sometimes it comes in all at once as a bonus," Knight explains. "So, how is a bonus treated in an Illinois divorce?"

The article outlines the distinction between marital and non-marital property. According to Chicago divorce lawyer Russell D. Knight, marital property, which is subject to division by the court, includes "all property, including debts and other obligations, acquired by either spouse subsequent to the marriage." However, bonuses earned during the marriage but received afterward can create gray areas. Knight points out that any asset presumed to be marital property must be proven otherwise by the party claiming it as non-marital.

Russell D. Knight further elaborates on the lack of specific statutes regarding bonuses earned during the marriage but received post-divorce. He references appellate court decisions, noting, "Any portion of [a] bonus earned during the marriage should be considered marital property." However, bonuses often have conditions attached, such as the requirement for continued employment, which may classify them as partially non-marital property.

Knight highlights the nature of bonuses, describing them as unexpected and non-guaranteed. He advises those anticipating bonuses to expedite their divorce proceedings to avoid splitting this income. Conversely, if a spouse expects a bonus, delaying the divorce could ensure that the bonus is considered marital property.

The article also touches on commissions, comparing them to bonuses. According to Knight, commissions are treated similarly to bonuses if they depend on future employment. For commissions tied to specific sales contracts, they are deemed marital property regardless of the divorce's timing.

Addressing bonuses received after separation or divorce filing, Knight clarifies that Illinois law does not automatically exclude these from marital property. He suggests that the courts might consider post-filing earnings as non-marital based on equitable grounds, though this is not guaranteed.

Income, including bonuses, plays a significant role in determining child support and maintenance (formerly known as alimony). Knight cites Illinois statutes, emphasizing that all sources of income, including bonuses, are included in calculating support payments. He explains that fluctuating bonus amounts often lead to negotiated solutions in divorce settlements. "You usually negotiate a solution to the varying bonus values in the divorce settlement," he advises.

To manage bonuses, parties can agree on a fixed percentage of future bonuses for a specific period. For maintenance, the common practice is to allocate 33% of the net bonus amount. For child support, reverting to the old statute percentages (e.g., 20% for one child, 28% for two children) is a common approach. Knight also suggests an annual "true up" meeting to adjust support payments based on actual bonus income.

If an agreement cannot be reached, the statutory guideline support requirements must be followed. In cases where bonuses are significantly reduced or absent in subsequent years, individuals can file a motion to modify support payments, citing a "substantial change of circumstances."

Knight emphasizes the strategic opportunities bonuses present in divorce proceedings. He encourages individuals to seek professional legal advice to navigate these complex matters effectively.

For those navigating divorce in Illinois and dealing with bonus income, this article by Chicago divorce lawyer Russell D. Knight provides valuable insights and guidance. To further understand how bonus income may affect the divorce, contact the Law Office of Russell D. Knight for a consultation.

About the Law Office of Russell D. Knight:

The Law Office of Russell D. Knight is a family law firm based in Chicago, Illinois. The firm is dedicated to providing compassionate and effective legal representation in various family law matters, including divorce, child custody, and spousal support. With a commitment to client-centered service, the team at the Law Office of Russell D. Knight strives to achieve the best possible outcomes for their clients.

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Email: russell@rdklegal.com

Website: https://rdklegal.com/

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