# Salary, bonuses and shares

Last updated: 2026-11-12

GUIDE • DIVORCE FINANCE SOLICITORS

# Salary, bonuses and shares

For many people, their most valuable financial resource is not a single asset but their income, often made up of a salary, annual bonuses and share awards. On divorce, these are treated quite differently from savings or property, and the timing of when a bonus or share award was earned can make a significant difference. This guide explains how the court approaches salary, bonuses and share-based pay in a financial settlement. 

Written by Nicola Jones - Partner, Divorce and Family - Last reviewed 13th October 2026

KEY POINTS

- Earning capacity is not a matrimonial asset to be shared, but income is relevant to maintenance and housing needs. 
- Bonuses already received during the marriage are usually treated as shared assets. 
- Bonuses and share awards earned after separation are more likely to be treated as the earner's own. 
- Unvested shares granted during the marriage are often divided by reference to how much of the vesting period fell within the marriage. 
- Maintenance can be structured to include a capped percentage of future bonuses. 

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### How is salary treated in a divorce? 

Income is not divided in the same way as capital. In Waggott v Waggott &#91;2018&#93;, the Court of Appeal confirmed that earning capacity is not a matrimonial asset to which the sharing principle applies, even where it was developed during the marriage. Instead, salary is relevant to the parties' needs. It may fund spousal maintenance, help determine how much each party can borrow for rehousing, and affect child maintenance. The court will also consider each party's ability to increase their earnings in future.

### Are bonuses shared on divorce? 

It depends on when the bonus was earned. A bonus that has already been paid during the marriage, and saved or invested, will usually form part of the matrimonial assets to be shared. A bonus that relates to work done after separation is more likely to be treated as the earner's own. Where a bonus straddles the separation date, for example one paid shortly after separation for a year mostly worked during the marriage, the court may treat part of it as matrimonial.

### How can bonuses be used for maintenance? 

Because bonuses are discretionary and can vary considerably, the court is often reluctant to fix maintenance at a level that depends on them. A common approach is to set maintenance by reference to basic salary, with the receiving spouse also entitled to a percentage of any future bonus. To reflect the uncertainty of bonus payments, the court will often impose a cap above which no further share is paid, and the percentage may reduce over time. 

If your income includes bonuses or share awards, click below to speak to one of our family solicitors in confidence.

### What happens to share options and unvested shares? 

Share options, restricted stock units (RSUs) and other deferred awards are often granted during the marriage but only vest some years later, and they may depend on the employee remaining in post. The court will look at when each award was earned and what conditions attach to it. A common approach is to treat the award as building up evenly over the vesting period, with only the portion attributable to the marriage being shared. Because these awards cannot usually be transferred, the non-employee spouse may instead receive a share of the proceeds as and when they vest, or a larger share of other assets.

### What about child maintenance? 

Child maintenance is usually calculated by the Child Maintenance Service, based on the paying parent's gross income, including bonuses, up to a set limit. Where income exceeds that limit, the court can order additional "top-up" maintenance, and it can also order contributions to school fees.

### What information will I need to disclose? 

Both parties must give full financial disclosure, usually on Form E. An employee will need to provide recent payslips, their P60, and details of any bonus scheme, share options or deferred awards, including vesting dates and conditions. Plan documents and award letters are often requested, and in complex cases, an expert may be asked to value unvested awards.

### Common questions

#### What does the court consider when deciding a financial settlement?

Each person’s income, earning capacity, assets and needs, the standard of living during the marriage, the length of the marriage, each person’s age and health, and the contributions each of you has made. The children’s welfare comes first.

#### Do I need a consent order if we have agreed everything?

Yes. Without a court order, your agreement isn’t legally binding, and financial claims between you remain open, even after the divorce is finalised.

#### What can I do if my spouse is hiding assets?

Both of you have a legal duty to give full financial disclosure, and the court can order further disclosure and draw conclusions against a spouse who doesn’t comply. If assets are being moved to defeat your claim, an urgent freezing injunction may be possible.

#### Will we need expert valuations in our financial settlement?

It depends on your assets. A home can often be valued by agreement, but businesses, complex pensions and some investments usually need an expert, normally one instructed jointly by both of you.

#### Does adultery or bad behaviour affect the financial settlement?

Rarely. The court only takes conduct into account in exceptional cases, such as where one spouse has deliberately wasted or hidden assets.

#### Who pays the legal costs in financial proceedings?

Usually, each of you pays your own. The court can order one party to pay the other’s costs where they have behaved unreasonably, for example by refusing to negotiate or failing to disclose their finances.

IN THIS GUIDE

[How is salary treated in a divorce?](#whose-name-is-on-the-deeds)

[Are bonuses shared on divorce?](#staying-in-the-home)

[How can bonuses be used for maintenance?](#what-can-happen-to-the-home)

[What happens to share options and unvested shares?](#how-the-decision-is-made)

[What about child maintenance?](#the-mortgage)

[What information will I need to disclose?](#if-you-are-not-married)

[Common questions](#common-questions)

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