How Is a Bonus Treated in an Illinois Divorce?
Money can play several roles in an Illinois divorce. It may be divided as property between spouses, and it may also be counted as income when calculating child support or spousal maintenance. While most people receive income through regular paychecks, compensation sometimes arrives as a bonus. When that happens, spouses often ask how a bonus will be handled during a divorce.
Are Bonuses Marital Property?
In an Illinois divorce, assets are classified as either marital property or non‑marital property.
Marital property is generally property that a court may divide between the spouses. Illinois law broadly defines marital property as “all property, including debts and other obligations, acquired by either spouse subsequent to the marriage.” 750 ILCS 5/503(a).
Non‑marital property usually remains with the spouse who owns it and is not divided by the court.
The general rule is that property obtained between the date of marriage and the date the divorce is finalized is considered marital property. Illinois law also lists several exceptions. In simplified terms, these include:
- Property received as a gift or inheritance, or property obtained in exchange for those assets
- Property obtained in exchange for property owned before the marriage
- Property acquired after the divorce judgment
- Property excluded by a valid premarital or postnuptial agreement
- Property awarded in a prior divorce judgment
- Property owned before the marriage (with some rules relating to retirement plans)
- Increases in the value of non‑marital property
- Income from certain types of non‑marital property when it is not due to a spouse’s personal efforts
If there is uncertainty about whether property is marital or non‑marital, Illinois courts generally presume it is marital property. As the court explained in In re Marriage of Steel, 2011 IL App (2d) 080974, any doubt about the nature of property is usually resolved in favor of finding that it is marital.
Bonuses are not specifically listed in the statute, so courts look at the circumstances surrounding the payment. Illinois courts have stated that “any portion of [a] bonus earned during the marriage should be considered marital property.” In re Marriage of Peters, 326 Ill. App. 3d 364 (2001).
However, many bonuses depend on continued employment or an employer’s discretion. Because of this, courts sometimes determine that part of a bonus relates to future work rather than work performed during the marriage.
This issue was addressed in In re Marriage of Wendt, 2013 IL App (1st) 123261. In that case, a husband received a large bonus shortly after the divorce judgment. The court determined the payment was not marital property because the employee did not have a contractual right to receive it. The employer could choose whether or not to issue the bonus, so the court treated it as an expectancy rather than a vested asset.
If an employee has a clear contractual right to receive a payment that has already been earned during the marriage, courts are more likely to treat that payment as marital property even if it is received later.
Is a Bonus Considered Income for Support Purposes?
Bonuses may also affect child support and spousal maintenance. Illinois statutes define income broadly. For maintenance calculations, the law describes gross income as income from all sources, with limited exclusions. 750 ILCS 5/504.
Illinois courts have emphasized that the focus is on the parent’s financial circumstances when support is determined. In In re Marriage of Rogers, 213 Ill. 2d 129 (2004), the Illinois Supreme Court stated that courts look at the parent’s economic situation at the time the support calculation is made.
Because of this broad definition, bonuses are often included as income when courts calculate support.
For maintenance, Illinois law provides a formula that may apply in many cases. When bonuses are part of income, courts sometimes address them by assigning a percentage of the net bonus to the receiving spouse.
Child support may also include bonus income. In some situations, courts average income over time or incorporate bonuses into a parent’s overall annual earnings.
Because bonuses may vary from year to year, divorcing spouses sometimes address them directly in their marital settlement agreement. Common approaches include:
- Agreeing on a support amount that reflects expected income fluctuations
- Assigning a percentage of future bonuses for support purposes
- Performing a yearly “true‑up,” where both parties review income and adjust support if necessary
If circumstances change significantly—such as a substantial decrease in income—a party may ask the court to modify support. Illinois law generally requires a substantial change in circumstances before modifying maintenance or child support.
How Is a Bonus Treated Before the Divorce Is Finalized?
Until a divorce judgment is entered, income and property obtained by either spouse are typically considered marital. Simply moving out or filing for divorce does not automatically change how property is classified.
In some situations, a court may consider when the income was earned when deciding how to divide marital property. Illinois law instructs courts to divide marital property in just proportions while considering several factors, including contributions made after a divorce case has been filed. 750 ILCS 5/503(d).
As a result, a bonus received after filing for divorce may still be treated as marital property, though the timing and circumstances may influence how it is ultimately divided.
Are Commissions Treated Differently Than Bonuses?
Commissions and bonuses share some similarities because both are tied to performance rather than a fixed salary. However, commissions often depend on whether the employee has already earned the payment under a contract.
If a commission is considered earned at the time a sale is made and the employee has a contractual right to receive it, courts may treat it as marital property if the sale occurred during the marriage—even if the payment arrives later.
On the other hand, if the payment depends on continued employment or other future conditions, courts may evaluate it more like a discretionary bonus.
Final Thoughts
Bonuses and commissions can raise complicated questions in Illinois divorce cases. Whether they are treated as marital property, income, or both often depends on the timing of the payment, the terms of employment, and the surrounding circumstances. Reviewing compensation structures and employment agreements can help clarify how these payments may be handled during the divorce process.
Russell Knight is an Illinois divorce attorney who represents clients in matters involving property division, child support, and spousal maintenance.
