What Happens to Spousal Maintenance Calculations When One Spouse Owns a Business or Has Complex Income in Washington?

If you’re going through a divorce in Washington and one spouse works at Amazon with substantial stock compensation, owns a stake in a Seattle tech startup, or runs their own business, spousal maintenance calculations become far more complicated than typical scenarios. The W-2 employee making $85,000 annually has straightforward income. But what about the Microsoft engineer whose compensation includes restricted stock units that vest over four years? Or the small business owner whose tax return shows $60,000 but who runs personal expenses through the business?

As a mediator with an MBA in Finance who works with Seattle-area couples, I’ve guided many negotiations where complex income makes maintenance discussions challenging. With thorough financial analysis, you can arrive at agreements that reflect economic reality rather than fighting in court over conflicting interpretations of what counts as income.

Understanding the Seattle Tech Compensation Landscape

Washington is home to some of the world’s largest tech companies and a thriving startup ecosystem, which means many divorcing couples are dealing with compensation structures that go far beyond base salary.

Take a typical software engineer at Amazon. Their total compensation might include a base salary of $180,000, annual performance-based bonuses, and restricted stock units worth $100,000 annually that vest over several years. Or consider someone at Adobe with stock options that could be valuable if exercised in the future. Perhaps one spouse works at Microsoft and receives stock awards that have significantly appreciated since the grant, creating phantom income that, although not reflected in their paycheck, represents real wealth.

Then there’s Seattle’s startup culture. One spouse might have taken a lower salary to work at an early-stage company in exchange for significant equity that could be worth millions if the company goes public, or nothing if it fails. How do you calculate maintenance when the income picture is that uncertain?

These compensation structures create challenges because what gets considered in Washington is actual income, not just potential future wealth. However, the complete economic picture also comes into play, meaning we can’t ignore these assets entirely.

When your earnings involve bonuses, stock options, RSUs, or equity shares, it can be hard to see a clear way forward. This is precisely where having a mediator with deep financial expertise makes an enormous difference. We can cut through the thicket of financial complexity, helping you find a path that protects what you’ve built while ensuring both spouses are well-positioned for their respective futures.

Business Ownership: What’s Really Available Income?

When one spouse owns a business, the central question is always: what income is actually available to pay maintenance?

Let’s say you own a marketing consultancy that shows $75,000 in net income on your tax return. But when we dig deeper, your business pays for your vehicle, cell phone, home office, health insurance, and continuing education. You’re also depreciating equipment and taking deductions that reduce taxable income but don’t represent actual cash leaving your pocket.

From a maintenance perspective, we need to calculate your actual economic income. This often means adding back certain business expenses and non-cash deductions to determine what’s actually available for support.

Business ownership also creates legitimate considerations that reduce available income. Maybe your business requires significant capital reinvestment. Perhaps you have debt obligations or seasonal cash flow fluctuations. These are real constraints on your ability to pay maintenance.

This is where my MBA training becomes invaluable. We’re conducting financial statement analysis that goes beyond the tax return to understand cash flow, working capital needs, and actual discretionary income. I’ve analyzed hundreds of businesses across diverse industries, and I know which deductions represent actual cash constraints versus tax planning strategies that don’t affect your ability to pay support.

Community Versus Separate Business Interests

Washington’s community property system introduces an additional layer of complexity when a business is involved. Was the business started before or during the marriage? Has separate property been commingled with community funds?

These questions matter enormously for both property division and maintenance. If a business is community property and you’re dividing it, the maintenance analysis looks different than if it’s separate property that one spouse retains.

For maintenance purposes, the income from that business might be considered available for support regardless of whether the business itself is community or separate property. However, the characterization impacts the overall economic package during negotiations.

Stock Compensation and Equity Awards

Seattle-area tech workers face unique challenges with stock compensation. Unlike salary, equity compensation can fluctuate dramatically in value, vest over time, and create tax complications that affect net income available for maintenance.

Let’s work through a typical scenario. One spouse works at a major tech company with annual compensation of $200,000 in salary and $150,000 in restricted stock units that vest quarterly over four years. For maintenance purposes, do we use the $200,000 base salary or the full $350,000 total compensation?

The answer depends on several factors. First, we need to understand vesting schedules and whether future equity grants are guaranteed or discretionary. RSUs that have already been granted and are vesting on a schedule are predictable income. Future grants that depend on performance are less certain.

Second, we need to consider tax implications. When RSUs vest, they’re taxed as ordinary income. That $150,000 in stock compensation might net only $90,000 after taxes, leaving the actual income available for maintenance and living expenses.

Third, we need to think about volatility. Stock values fluctuate, and what was worth $150,000 at grant might be worth $200,000 or $100,000 when it vests.

In mediation, I help couples model different scenarios. Maybe you agree that maintenance will be based on salary plus a conservative estimate of stock compensation, with a clause to revisit if stock values change dramatically. Perhaps you decide to base it solely on salary but adjust the property division to account for unvested equity.

But we don’t just tackle the immediate challenge of determining maintenance based on current stock values. We help you anticipate how changes might affect things down the road—what happens if the stock price doubles or crashes, if the paying spouse changes jobs and loses their equity compensation, or if new grants exceed historical patterns. By planning for these potential speed bumps now and building appropriate flexibility into your agreement, you can move forward confidently without constantly looking back or worrying about future disputes.

Startup Equity: The Ultimate Complex Income

Startup equity warrants special attention due to its enormous potential value coupled with significant uncertainty. One spouse might own 5% of a startup that could go public and be worth millions, or could fold next year and be worth nothing.

In Washington, unvested and speculative equity interests typically aren’t valued for property division purposes due to their uncertainty. However, this doesn’t mean they’re completely ignored in the maintenance analysis. If someone took a below-market salary to work at a startup in exchange for significant equity, it affects their current income available for maintenance.

In mediation, I often see couples negotiate creative solutions. Perhaps you agree to maintenance based on your current salary, with the provision that if the equity becomes liquid through an IPO or acquisition, maintenance will be adjusted or terminated. Consider structuring a property settlement that accounts for the speculative value while keeping maintenance focused on actual current income.

These conversations require sophisticated financial thinking and a willingness to deal with uncertainty. You’re essentially negotiating around probabilities and future scenarios—exactly the kind of flexible, creative problem-solving that mediation enables but litigation makes nearly impossible.

The Financial Analysis Process for Complex Income

When working with couples in which one spouse has complex income, we conduct a detailed financial analysis. This process begins with gathering comprehensive documentation, including business and personal tax returns, profit and loss statements, balance sheets, bank statements, stock compensation statements, and information about business structure and debt obligations.

Then we conduct an economic analysis of income. We start with reported income and add back personal expenses paid by the business, such as auto expenses and insurance. We add back non-cash expenses such as depreciation. We subtract legitimate business expenses that represent actual cash outflows.

This gives us a more accurate picture of income available for maintenance than what appears on a tax return.

We also analyze income trends and stability. Is business income growing or declining? Is stock compensation likely to increase or decrease? These factors affect not just the amount but also the maintenance duration and structure.

Negotiation Strategies for Complex Income Situations

When negotiating maintenance with complex income, I encourage couples to think creatively and build in flexibility. A fixed monthly maintenance amount based on salary might make sense, with an additional percentage of bonus or stock compensation applied when received. Or you might agree to annual reviews if income is particularly unpredictable. Or you might structure higher initial maintenance with a step-down as the lower-earning spouse becomes self-supporting.

The key is being realistic about both income availability and future uncertainty. The business owner or tech employee shouldn’t understate their economic income to avoid maintenance obligations, but the other spouse needs to understand that complex income often comes with genuine uncertainty and cash flow constraints.

I also encourage couples to consider how business interests and complex compensation arrangements might impact property division. Sometimes it makes more sense to equalize the outcome through property division rather than ongoing maintenance, especially if there’s significant business value or unvested equity involved.

Moving Forward with Expertise and Control

Navigating maintenance negotiations when one spouse has business ownership or complex income requires patience, thorough financial analysis, and a willingness to think creatively. You’re conducting sophisticated economic analysis that accounts for cash flow, tax implications, business realities, and future uncertainty.

In litigation, these complex income situations turn into expensive battles of dueling expert witnesses. You’ll pay thousands for a forensic accountant to analyze the business, then your spouse pays thousands for their own expert who reaches different conclusions. A judge who may not understand tech compensation or business accounting then makes decisions based on limited testimony and rigid guidelines. You lose control, spend a fortune, and often end up with an outcome that doesn’t reflect the economic reality of your situation.

In mediation, you take a completely different approach. We work through the financial complexity together, analyzing the numbers collaboratively rather than as adversaries. With my MBA in finance and nearly 20 years of experience helping couples navigate exactly these situations, I can guide you through the analysis that would cost tens of thousands in litigation—but we do it cooperatively, efficiently, and with far more flexibility to structure creative solutions.

I can’t provide legal advice about what might happen in your specific case. But I can help you understand the complete economic picture of business income, stock compensation, and complex assets. More importantly, I can help you design maintenance arrangements that account for volatility, build in appropriate flexibility for future changes, and protect what you’ve built while ensuring both of you move forward with financial stability.

Working with a mediator who truly understands financial complexity—who can analyze business financial statements, model stock compensation scenarios, and help you anticipate future changes—transforms what could be a devastating court battle into a manageable, collaborative process. You maintain control over the outcome, you design solutions that actually work for your specific circumstances, and you preserve both your financial resources and your ability to co-parent effectively if you have children.

That’s the power of choosing mediation with the right financial expertise when you’re facing complex income situations in your Washington divorce.