Q: What are executive compensation plans?
JC: Executives receive compensation you would
typically expect such as salary, bonus and retirement plans like
RRSPs or pensions. Those types of benefits are easy to deal with in
family law cases. The challenge occurs when executives receive more
complex compensation such as stock options and restricted share
units. So, From a family law perspective, these require a bit more
attention.
Q: How does a spouse's executive compensation plan
impact the valuation of their property?
JC: Compensation that was awarded, but not yet
received prior to separation, can be considered property for family
law purposes. A good example of this is stock options, which can
have value, but that value will only be realized when the options
are exercised at some point in the future. Therefore, at the time
of separation, the value must be considered.
