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Deferred Compensation Alimony Calculator

Calculate how deferred compensation such as RSUs, stock options, bonuses, and deferred salary affects alimony obligations. This calculator uses the coverture fraction method to determine the marital share and applies present value discounting to unvested compensation.

$
Current or estimated value of all grants/awards
months
Full vesting schedule length
months
months
Total months of marriage
months
Months from comp grant to separation date
%
For present value of unvested comp
%
Applicable alimony rate to marital comp
The coverture fraction is 100.0%, meaning $194,975 of the total $200,000 is considered marital property. The present value of unvested compensation is $94,975(discounted from $100,000 nominal).
ALIMONY ADJUSTMENT FOR DEFERRED COMP
$58,492
30% of $194,975 marital share
Total deferred compensation$200,000
Vested portion$100,000
Unvested portion (nominal)$100,000
Present value of unvested$94,975
Coverture fraction100.0%
Marital share (vested)$100,000
Marital share (unvested PV)$94,975
Monthly alimony impact$2,437
Compensation Breakdown
Marital Vested
Marital Unvested (PV)
Non-Marital
Value Comparison
Deferred Comp Values
Total C...Marital...Alimony...PV Unve...
Disclaimer: This calculator provides estimates only and does not constitute legal advice. Family law varies significantly by jurisdiction. Results are based on general guidelines and may not reflect your specific circumstances. Always consult a qualified family law attorney for advice specific to your situation.

How Deferred Compensation Affects Alimony

Deferred compensation is one of the most complex assets to handle in divorce proceedings. Unlike salary, which is earned and received in the same period, deferred compensation is earned over time but paid out later. This creates questions about when the income was "earned," what portion is marital versus non-marital, and how to value compensation that may never vest.

RSUs (Restricted Stock Units) typically vest on a schedule, often 4 years with a 1-year cliff. Stock options may have exercise windows and strike prices that affect their real value. Deferred bonuses may be contingent on performance metrics. Each type requires careful analysis to determine the marital share and its impact on alimony. Courts generally apply the coverture fraction to isolate the marital portion, then determine whether to distribute it immediately or defer division until vesting.

The Coverture Fraction Explained

The coverture fraction is the primary tool courts use to divide deferred compensation between marital and non-marital property. The numerator is the length of the marriage (or the portion of the marriage that overlaps with the vesting period), and the denominator is the total vesting period. This ratio determines what percentage of the deferred compensation is subject to equitable distribution.

For example, if an employee receives an RSU grant that vests over 48 months, and 30 of those months fell during the marriage, the coverture fraction is 30/48 or 62.5%. This means 62.5% of the RSU value is marital property. The remaining 37.5% is the employee's separate property. When calculating the alimony impact, the applicable alimony percentage is applied only to the marital share.

Different jurisdictions may calculate the coverture fraction slightly differently. Some use the date of separation rather than the date of divorce. Others may consider only the employment period that overlaps with the marriage rather than the vesting period. Understanding your state's specific approach is essential for accurate calculations.

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This website provides estimates for informational purposes only. This is not legal advice. Consult a qualified family law attorney for guidance specific to your situation.