Onward Glossary
Confused by financial and legal jargon? The Onward Glossary breaks down the key terms you’ll encounter when navigating divorce, asset division, or financial planning.
From stocks and 401(k)s to prenuptial agreements and separate property, this guide helps you understand what everything means and how it applies to your situation. Whether you’re reviewing investments, planning retirement, or sorting out property ownership, this glossary gives you the clarity to move forward with confidence.
Financial Terms
401(k)
A retirement plan through an employer, often with automatic deductions from your or your spouse’s paycheck.
403(b)
Similar to a 401(k); a retirement plan offered by public schools and certain charities, often with automatic deductions from your or your spouse’s paycheck.
457(b)
A deferred compensation retirement plan for government employees that defers a portion of your income to a retirement plan.
Accrued Paid Leave
Time off employees earn over time, which they can later use for vacation, illness, or personal matters; can sometimes be cashed out.
Bonds
Loans to governments or companies that pay interest that are likely purchased through a brokerage account.
Brokerage Accounts
An investment account that allows you to buy and sell stocks, bonds, and other securities.
Cash on Hand
Physical cash stored at home or somewhere not in a bank account.
Civil Service
Government employment (federal/state/local) that typically includes pensions or benefits like FERS/CSRS and, for federal employees, the TSP.
Copyrights
Ownership of original works you’ve created, like stories, songs, or art.
Cryptocurrency
Digital or virtual currencies, like Bitcoin or Ethereum, that you’d have in a brokerage account or digital wallet.
Deferred Compensation Plans
An arrangement to delay part of your pay to a future date, paying out later, often after leaving the job.
Defined Benefit Plans / Pensions
Employer-sponsored retirement plans where the employee and sometimes the employer contribute; pays a set monthly amount in retirement.
Exchange Traded Funds (ETFs)
A basket of securities that trades on an exchange like a stock.
Gold
Physical gold (coins or bars) stored at home or in a safe deposit box, or “paper gold” in a brokerage account.
Health Savings Accounts (HSAs)
Special bank accounts for saving money to pay for doctor visits and medicine, often linked to high-deductible health insurance plans.
IRAs (Individual Retirement Accounts)
Retirement accounts separate from your employer, usually with a bank or brokerage firm. Includes Traditional, Roth, SEP, and SIMPLE IRAs.
Military Retirement Pensions
Lifetime monthly benefits based on service years and pay grade (separate from the Thrift Savings Plan).
Mineral & Water Rights
Ownership of resources in the ground or water on your land; may be documented separately from land title.
Mutual Funds
Pooled investments managed by professional money managers, typically containing a mix of stocks and/or bonds and found in a brokerage account.
Oil & Gas Rights
Permission to drill for oil or gas on land you own.
Other Defined Contribution Plan
Any other employer plan with an individual account balance not listed above.
Outstanding Tax Refunds
Tax refunds issued by tax authorities but not yet claimed or received by the taxpayer.
Restricted Stock Units (RSUs)
Actual shares of company stock granted to employees with restrictions such as vesting and continued employment.
Separate Property
Assets and debts that belong exclusively to one spouse and are not subject to division between both spouses. Separate property typically includes:
- Assets Owned Before Marriage: Any property or assets that a spouse owned before getting married.
- Inheritances: Any assets or property inherited by one spouse, whether received before or during the marriage.
- Gifts: Gifts received by one spouse from a third party, intended solely for that spouse.
- Personal Injury Awards: Compensation from personal injury lawsuits, except portions meant to cover lost wages or medical bills during the marriage.
- Agreements: Property designated as separate through a prenuptial or postnuptial agreement.
However, separate property can become “commingled” with marital property if it is mixed together in such a way that it becomes indistinguishable. For instance, if separate funds are deposited into a joint account and used for joint expenses, those funds may lose their separate property status.
Stock Options
Rights to buy company stock at a set price as part of compensation, usually offered by startups or tech companies.
Stock Purchase Plan
An employee benefit program that allows employees to purchase company stock, often at a discounted price through payroll deductions.
Stocks
Ownership in a public company, in the form of shares, that may be in an investment account.
Survivor Benefit Plan (SBP)
An optional military program that provides a continuing monthly annuity to a named beneficiary after the retiree’s death.
Teacher Retirement Plan
State-run educator plans (often TRS) that may be pensions or hybrid plans with set rules for retirement benefits.
Thrift Savings Plan (TSP)
The federal government’s 401(k)-style retirement account for military and civilian employees.
Timeshares
Partial ownership of a vacation property, often for a specific week each year.
Trust Beneficiary
A named recipient who receives (or will receive) money or other assets from a trust set up by someone else.
Legal Terms
Co-Petitioning
See “Joint Filing”
Joint Filing
Both spouses agree to file for divorce together. They sign the same agreements instead of filing separately. This arrangement most commonly happens in amicable divorces and can offer benefits, including reduced filing fees as well as a simplified and expedited process.
Also known as “Co-Petitioning” in some states.
Postnuptial Agreement (“Postnup”)
A contract made after marriage that covers the same issues as a prenup, often created due to financial changes or relationship concerns.
Post-nuptial Agreement (often called a "postnup"):
Very similar to a prenup, but it’s made after the couple is already married. It covers the same kinds of things as a prenup. People might get a postnup if:
- Their financial situation changes a lot after marriage
- They forgot to get a prenup but later decide they want one
- They’re having marriage problems and want to clarify financial matters
Prenuptial Agreement (often called a "prenup")
A contract made before getting married. It outlines how a couple will handle their finances and assets if they divorce or one person dies. It often covers things like:
- Who owns what before the marriage
- How to split money and property if they divorce
- Whether one person will pay the other alimony
Prenuptial Agreement (“Prenup”)
A contract made before marriage outlining how finances and assets will be handled if the couple divorces or one dies.
Separate property
Assets and debts that belong exclusively to one spouse and are not subject to division between both spouses. Separate property typically includes:
- Assets Owned Before Marriage: Any property or assets that a spouse owned before getting married.
- Inheritances: Any assets or property inherited by one spouse, whether received before or during the marriage.
- Gifts: Gifts received by one spouse from a third party, which are intended solely for that spouse, not as joint marital property.
- Personal Injury Awards: Compensation received from personal injury lawsuits, except for any portion of the award meant to cover lost wages or medical bills incurred during the marriage.
- Agreements: Any property designated as separate through a prenuptial or postnuptial agreement.
However, separate property can become “commingled” with marital property if it is mixed together in such a way that it becomes indistinguishable. For instance, if separate funds are deposited into a joint account and used for joint expenses, those funds may lose their separate property status.