Higher Payments for Higher Earners
While alimony (sometimes referred to as spousal support or spousal maintenance) is not always ordered in a divorce, situations where permanent alimony is necessary may occur. In many cases involving a higher net-worth, specifically where one spouse is the primary earner and the other may not work, it can be expected to see some type of alimony payment. How does a higher net-worth impact these payments?
Determining Alimony Eligibility
In Nevada, alimony is categorized into four types: temporary, rehabilitative, and permanent (which is rare). While there is no set formula used to determine how much alimony is paid in each situation, judges instead use various factors to determine both eligibility for receiving alimony and how much one spouse should pay. These factors include the following:
The length of the marriage
The current financial status of each spouse
The earning capacity of each spouse, including income, education, and other financial qualifiers
The financial contributions of each spouse while married
The needs of each spouse post-divorce
The standard of living upheld by each spouse while married
The Role of a Higher Net-Worth
So how exactly should someone of higher net-worth approach alimony? It depends entirely on the situation of each couple getting divorced. In situations where both spouses worked and brought a relatively similar amount of money, alimony may not be as large of a factor in the divorce. However, in situations where one spouse worked and contributed enough so that the other did not need to, it is reasonable to assume that the spouse who did not work would receive some type of alimony payment.
It can also be argued that higher net-worth means alimony payments may be higher than those of individuals going through a more “traditional divorce.” Be sure to speak with your high net-worth divorce attorney to gain a proper perspective of what to expect.
Consult With Your High Net-Worth Divorce Attorney
Remember that higher earners have additional considerations in their divorces, including alimony. Consult with your attorney to learn how to proceed at various steps in the process and to effectively navigate through your high net-worth divorce. At Ford & Friedman, our team is prepared to help you work through the various complexities of high net-worth divorce while protecting your rights.
Learn more about high net-worth divorce and alimony in Nevada by calling us at (702) 904-9898 or by visiting our website.