Deferred Compensation Package - Divorce Encyclopedia

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Term Definition Deferred Compensation Package - includes all retirement assets, such as pension, 401(k)s, IRAs, and any variety of saving or postponed income schemes accumulated during the marriage.

Application in Divorce The value of deferred compensation packages is sometimes difficult to calculate and very often requires the services of professionals, particularly in the case of high-income professionals or top managers. These assets often have present and future values that make them very valuable, and sometimes these packages appreciate both actively and passively.

separation is very important in determining their distribution.

The distribution of a deferred compensation package is a leverage factor, particularly for women married to men in high paying jobs. Very often these woman have forsaken careers to advance the careers of their husbands or have made large noneconomic contributions to the marriage.