According to the Association of Executive Search and Leadership Consultants (AESC), C-suite executives face an “above average” divorce rate. Chief Operating Officers (CEOs) and other C-level professionals are becoming increasingly isolated as they strive for professional success, and this has the potential to affect virtually every aspect of their personal lives. These distinct demands continue even after marriages fail, as C-suite executives face unique divorce challenges not seen by other spouses. The most logical first step in overcoming these hurdles is to become aware of them. A consultation with an experienced divorce lawyer in South Carolina may shed further light on these issues, providing C-suite professionals with the necessary guidance to proceed confidently. Consider calling (888) 748-KING to continue this conversation alongside King Law Offices.
How Does a C-Level Bonus Affect Divorce?
According to Harvard Business Review, the average CEO receives about 50% of their base pay in the form of bonuses. C-level executives in major companies may receive millions of dollars in bonuses each year – and this is definitely something to consider when approaching divorce. Depending on the circumstances, the presence of large bonuses could be a challenge or a potential opportunity during divorce. Like most income during marriage, a bonus is “marital property” – and it is eligible for division between spouses.
On the other hand, it may be possible to defer bonuses until after the divorce. CEOs may want to discuss this possibility with the Board of Directors and other relevant parties. Honest and open communication could be advantageous during divorce, as embarrassing as this might feel for some spouses. In addition, C-suite executives should not attempt to conceal bonuses from their exes, as this could lead to various legal consequences. If a CEO manages to defer their bonus until after the date of separation, they may be able to keep the entire sum. However, the other spouse may argue that the bonus is marital property because it was “earned” during the marriage. To learn more about this strategy, consider a consultation with King Law Offices.
Bonuses in the Form of Stock Options
C-level executives often receive bonuses in the form of stock options, and this may cause more complex divorce challenges. Unlike a cash bonus, stock options have the potential to appreciate in value to a considerable degree during the marriage. This rise in value could become marital property, even if the stock options were earned or “vested” before the marriage began. In the context of divorce, disputes may arise over whether the stock options were vested or unvested. Unvested stock options generally have greater potential to escape equitable distribution, and spouses may therefore want to keep these options unvested until after the date of separation. It may also be possible to defer stock options in the same way as a cash bonus.
C-Suite Executives Face Distinct Child Custody Challenges
Aside from financial issues, C-suite executives also face considerable divorce challenges when fighting for child custody. CEOs and other C-level professionals are often “married to their work,” and they may struggle to spend much time with their kids. This may be true both during marriage and the divorce proceedings, and it can affect child custody outcomes. South Carolina family courts consider various “best interest factors” when making decisions on child custody, and one factor is the amount of time both parents have spent with their children. CEOs who spent very little time with their children during marriage could face an uphill custody battle in South Carolina.
C-level executives can mitigate this challenge by spending as much time with their kids as possible during divorce proceedings. Family courts may see this in a positive light, as it shows that the CEO is willing to take on a more active parenting role after the marriage ends. With all that said, the amount of time spent with children is not the only factor considered by family courts. Judges also assess the financial stability of each parent – and this could work in the favor of high-income C-level executives. There are many other factors to consider, including past violence, substance abuse, and the distance between family homes.
How Should S-Suite Executives Approach Alimony?
Alimony is often one of the greatest divorce challenges for C-level executives. In South Carolina, family courts award alimony based on income or wealth disparity between spouses. A CEO is likely to earn much more than their spouse, and this could lead to significant alimony obligations. Permanent alimony is relatively common in South Carolina, and these payments could continue until the death of the payor.
Various strategies could prove effective in mitigating this challenge. The first step is to consider the income and wealth of the other spouse. So-called “power couples” are common in the modern era, and the income disparity between two high-income professionals may be somewhat low. A CEO with an ex who earns roughly the same amount can escape burdensome alimony obligations. Unlike many other states, South Carolina does not award alimony to a proven adulterer. A CEO who proves their ex was unfaithful during the marriage could therefore avoid all alimony obligations. Finally, a C-level professional could reduce or eliminate these payments at a later date – even if the family court awarded their ex permanent alimony at the conclusion of divorce proceedings. For example, a CEO could prove that their ex is living with a new romantic partner. This is called “cohabitation,” and it makes further alimony payments unnecessary.
Contact King Law Offices
C-level executives are often very familiar with the advantages of task delegation. CEOs must focus their attention where it is needed most, and micromanagement is a common mistake. In the same way that a CEO might ask an employee to type out a report, C-level executives may want to delegate divorce challenges to experienced family law attorneys in South Carolina. There is no need to put a career on hold simply to handle a divorce. Consider calling (888) 748-KING to discuss the potential next steps during a consultation.
