When a divorce involves high assets, it comes with added challenges.
One of the financial aspects that individuals often grapple with during a divorce is alimony. In high-asset New York divorces, alimony payments can be substantial, but there are ways to potentially reduce these payments without compromising fairness.
1. Understand the alimony calculation
In New York, the courts base alimony on various factors, including the length of the marriage, income disparity between spouses and the lifestyle enjoyed during the marriage. To lower alimony payments, it is important to understand the assessment of these factors.
2. Negotiate a fair settlement
In many cases, divorcing spouses can negotiate a fair settlement that takes into account the financial needs and resources of both parties. By coming to an agreement outside of court, you can potentially avoid a lengthy and costly legal battle. Ensure the settlement addresses your financial concerns.
3. Explore asset division
High-asset divorces often involve significant property and asset division. Carefully consider the division of assets, as this can impact alimony payments. For instance, you may be able to retain more valuable assets in lieu of higher alimony payments.
4. Reevaluate spousal income
In some cases, the paying spouse may experience a significant reduction in income after the divorce. This change in financial circumstances can be grounds for requesting a modification of alimony. Keep detailed financial records to support your claim.
Approximately 689,000 divorces happen every year, many of which require one spouse to pay alimony. Understanding the factors that influence alimony provides a way for both spouses to be financially stable post-divorce.