Excited by a Huge Bonus, Then Shocked... "Isn't This Money Mine?" The Fate of Asset Division

Recently, large performance bonuses at companies such as SK hynix and Samsung Electronics have become a hot topic, raising the likelihood that the issue of "performance bonus division" during divorce proceedings will become a significant point of contention in future legal disputes.

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On May 3, a story was released on the YouTube channel of Narae Yang, a lawyer specializing in divorce, about a woman who, just before finalizing an uncontested divorce with her husband who works at a major corporation, learned about his multimillion-won performance bonus and began to reconsider whether to switch to litigation.

Ms. A, who has been married for seven years and has one child, stated, "Except for our first year of marriage, I have almost no happy memories with my husband." She added, "Although there was no infidelity or violence, we had significant conflicts due to personality differences, and I maintained the marriage for the sake of our child."

The issue of splitting performance bonuses is becoming a legally significant matter in divorce proceedings. Screenshot from Lawyer Namra Yangae's YouTube channel

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The two decided to proceed with an uncontested divorce after virtually ceasing communication. They agreed to split the assets 60 to 40, with Ms. A taking custody of the child, and they had even notarized the agreement. Ms. A explained, "We agreed not to pay each other alimony, and since I brought nothing into the marriage, we decided on a 60 to 40 split in recognition of my husband's greater contribution."

However, the situation changed when she found out about her husband's potential multimillion-won performance bonus. Ms. A said, "I started to wonder if I would not receive any of the bonus if I went through with the divorce as planned," and added, "I considered whether, if I filed a lawsuit, the bonus my husband receives could be subject to asset division, allowing me to claim 40%."

The issue of dividing performance bonuses during divorce proceedings is becoming an increasingly significant legal matter. Screenshot from Lawyer Yang Narae's YouTube channel

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Regarding this, lawyer Yang explained that the standard for asset division is generally the value of the assets at the date of the final hearing, when the proceedings are concluded. However, she also noted that in practice, different standards are often applied.

She elaborated, "For assets with high volatility such as deposits, savings, and stocks, the value is often determined as of the date the marriage broke down. Usually, the time when the lawsuit is filed is considered the point at which the marital relationship has ended."

Performance bonuses are also not determined solely by the time of payment. She explained, "Because performance bonuses are considered compensation for past work, if the work period overlaps with the marriage period, there may be room to recognize the spouse's contribution."

However, lawyer Yang added that it is a complex judgment, stating, "The timing of the bonus payment, the reference work period, the point at which the marriage broke down, and the proportion of the bonus in the total assets all need to be comprehensively considered."

The issue of splitting performance bonuses during divorce proceedings is becoming a legally significant matter. Screenshot from lawyer Narae Yang's YouTube channel

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In particular, if the marital relationship had already effectively ended, the outcome could be different. She explained, "If the spouses were already living like strangers, it would be difficult to recognize the wife's contribution to the husband's work, so the bonus may be excluded from asset division or the percentage could be lower."

Additionally, she pointed out that the original terms of the agreement could actually be more favorable. Lawyer Yang said, "If the marriage was not long and a 60 to 40 split was secured in an uncontested divorce, those are relatively favorable conditions," and emphasized, "There is no guarantee that 40% would be recognized just because you go to court."

She went on to say, "While there is a possibility that the bonus could be included, the outcome will vary greatly depending on the recognized contribution. If you have already secured favorable terms through an uncontested divorce, you should weigh the litigation costs and time carefully before making a decision."

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