Divorce is difficult no matter how many assets you have. However, for couples with a high net worth, the process is inherently more complex than most others. Among the issues divorcing couples must face is alimony and, if you have substantial assets, this form of support will be calculated a little differently.
How Alimony is Calculated
When a spouse earns significantly more income than the other, the spouse who earns less may be entitled to alimony. Alimony is designed to reduce the economic impact a divorce can potentially have on the lower-income earning spouse, so they can continue to maintain a standard of living similar to what the couple had during the marriage. It is separate from property division and child support.
When determining alimony in a high net worth divorce, the court will consider numerous factors, including:
- If one spouse gave up employment or educational opportunities to help support the other’s career
- How long the marriage lasted
- The lifestyle the couple had while married
- Each spouse’s earning ability and education
Generally, if a marriage was short-term, alimony is unlikely. However, in a high net worth divorce, if there is a great disparity in income between spouses, short-term alimony might be granted. Additionally, tax considerations also play an essential part in how alimony-related issues are resolved. Alimony is treated as taxable income for the recipient and a deduction to the party who pays support.
Regardless of the assets you have, alimony will end when the receiving party remarries or passes away. A judge also has a lot of discretion when it comes to the length of time alimony may be awarded.
Request a Case Evaluation with One of Our Skilled Attorneys to Get Started!
If you are navigating a high net worth divorce, the knowledgeable legal advocates at Ford & Friedman can provide the guidance you need. Our experienced team takes a collaborative approach to working with our clients and seeks to provide personalized, sophisticated strategies to achieve the best possible results. With our attorneys on your side, you can feel confident your case is in good hands.
Reach out to our law office today at (702) 904-9898 to schedule a consultation with one of our attorneys to discuss the details of your high net worth divorce.