There are legal, emotional, and financial challenges during a divorce, especially a divorce involving children. For many fathers, the legal proceedings surrounding a divorce can be very stressful, and there is a lot at stake. The legal complexities are heightened when one or both spouses have significant assets and wealth. A high net worth divorce attorney is an essential ally for protecting your children, your assets, and your way of living.
Understanding High Asset Divorces
There is no precise definition for a high asset divorce, but it refers to couples with significant combined wealth, a large quantity of assets, or highly complex assets. This may include:
- Business ownership
- Business interests
- Investment profiles
- Real estate properties
- Multiple homes
Marital assets are the only assets that are separated during divorce, but separate assets still have an impact on the outcome of the case. Spouses in high asset divorces may be more contentious during proceedings, as both have a lot to lose. The amount of time it takes to properly value these assets can prolong the proceedings, making them more stressful.
When a couple has children, both custody and support are impacted by the financial ability of each parent. It is also complex to determine how your children’s inheritance will be handled. It’s important to work with an attorney with the dedication and resources needed to manage these cases.
Child Support in High Net Worth Divorces
In many states, child support is determined based on a formula that accounts for each parent’s income, the number of children that require support, and the basic needs of childcare. The combined income of both parents and each parent’s parenting time can also impact this formula.
However, in most states, there is a cap on the income that can be used in this formula. When parents have high net worth or a high number of assets, the state formula may no longer apply. The judge may also have more freedom to determine the amount of child support. Children in these divorces are often used to a higher standard of living, and child support is designed to persevere these children’s standard of living. This can complicate the proceedings.
Additionally, children in high net worth divorces often have unique expenses that aren’t present in other divorces. These include:
- Private school and boarding school costs
- Expensive college situation
- Vacations and other travel needs
- Costly after-school sports and other extracurriculars
These costs should be considered by the court or by the parents when determining child support amounts. Child support can, therefore, be much higher than it would be based on the state’s formula.
Spousal Support and High Net Worth Divorces
Spousal support, also called spousal maintenance or alimony, depending on the state, is also affected by high asset divorces. In most states, there is a formula for determining if there are spousal support payments, and it is based on one spouse’s needs and the other spouse’s ability to pay. In high net worth divorces, income may exceed the cap for the support formula.
The point of spousal support is to enable each spouse to maintain the standard of living they enjoyed during the marriage. If both spouses make significant income, this may be unnecessary. However, if one spouse makes significantly more, spousal support payments may have to be very high to make up for it. If spouses do not reach a fair agreement for support and property division, the decision will be up to the court. Spousal support payments are determined based on the judge’s discretion.
Q: Do You Have to Pay Child Support in Missouri If You Have 50-50 Custody?
A: Both parents have a responsibility to provide their child with financial support. If you and your co-parent have perfectly joint physical custody, there is a chance that you do not have to pay child support, as you will both be paying for your child’s needs half the time.
However, it’s uncommon for parents to get an even split for parenting time. Additionally, if one parent has a higher income, they would likely be required to pay child support, even with 50-50 custody. There are also practical considerations. For instance, only one parent would pay health insurance for a child.
Q: How Are the Best Interests of the Child Decided in Indiana?
A: In Indiana, a child’s interest is the guide for any legal decision made regarding children, including custody, visitation, and support. To determine a child’s interests regarding child custody, the court looks at factors such as:
- The child’s age and gender
- The wishes of each parent
- The wishes of a child, especially those older than 14
- The relationship the child has with their parents, any siblings, and any other person with importance in the child’s life
- How the child has adjusted to their home, school, and surrounding community
There are several other factors used to determine a child’s interests.
Q: What Constitutes an Unfit Parent in Oklahoma?
A: An unfit parent is a legal term referring to a parent deemed incapable of caring for their child’s basic needs, care, and safety. Child abuse, child neglect, and abandonment are all reasons why a parent may be found unfit in Oklahoma.
If a parent has a substance abuse disorder and is unable to maintain a safe and reliable environment for a child, they may be considered unfit. Criminal actions that endanger a child’s physical or moral well-being, mental illness that prevents a parent from caring for their child, and other circumstances may result in a parent being found unfit.
Q: How Are Assets Split in a Divorce in Nebraska?
A: Nebraska, like most states, is an equitable distribution state. Spouses can split their own marital assets however they want if they do so outside of court, and the court will approve the agreement as long as it is not unconscionable. However, if a couple goes to court for property division, the court will review the factors of their marriage to determine what a fair split is. This may end up being an equal split, but frequently it is not.
Contact Stange Law Firm for Father’s Rights Support
High asset divorces require significant professional support. At Stange Law Firm, we have the experience and the professional resources needed to help you navigate a high asset divorce and advocate for your family’s needs. Contact our attorneys today.