In re Marriage of Minkin

Summary

The parties' 2004 stipulated judgment gave the wife 41 percent of the husband's 'annual bonus' as additional spousal support. After he changed jobs to a multi-component compensation package, she claimed all pay above base salary counted, roughly $700,000, while he paid only on the incentive plan and part of a long-term plan. The court held the undefined term was ambiguous, upheld the trial court's reading as discretionary performance-based payments supported by substantial evidence, and affirmed an arrearage of about $200,000. It also affirmed the reduced fee award and the denial of reinstated monthly support after the agreed term expired.

What it means for the financial analysis

When a support agreement uses a percentage of bonuses, the compensation analysis may need to classify each pay component (incentive plan, long-term plan, deferred compensation, severance) by whether it is discretionary and performance-based. The court's reading rested on the parties' circumstances at signing and expert testimony, and it expressly declined to rule on how particular components are categorized beyond the term's meaning.

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