Deferred compensation is earned compensation that is payable at a future date rather than when the work is performed. In a divorce the community interest in deferred compensation depends on when it was earned relative to the marriage.

Deferred compensation that was earned during the marriage is community property regardless of when it will actually be paid. Deferred compensation earned after service of the petition is separate property.

Deferred compensation does not always fit neatly into standard division frameworks. The plan documents must be reviewed to understand the vesting schedule, the distribution options, and whether the plan allows assignment or division.