In a high-asset divorce, significant wealth and valuable assets are at stake. This can result in additional pressures for each party. For example, calculating spousal support can be a complex process.
Those approaching divorce with a high net worth should understand how courts calculate spousal support.
Reviewing each party’s finances
The first step in calculating spousal support in a high-asset divorce involves a thorough assessment of the financial situation of both spouses. This includes going over the value of all assets. For example, courts look at properties, businesses, investments and other valuable holdings.
The income and earning potential of each spouse are key factors in determining spousal support. This assessment considers not only the current income but also future earning capacity, bonuses, investments and other financial resources. According to the New York State Unified Court System, courts request pay stubs, each party’s most recent tax return and a Financial Disclosure Affidavit when determining spousal support obligations.
Lifestyle and contributions
The lifestyle and standard of living established during the marriage play a significant role in spousal support calculations. The goal of spousal support is to ensure that both parties can maintain a similar standard of living post-divorce. Courts review each spouse’s financial needs and obligations. This includes expenses related to housing, healthcare, education and other financial responsibilities. The contributions of each spouse to the accumulation of wealth and assets during the marriage are also considered. This includes non-financial contributions, such as homemaking, childcare or support in building a business or career.
By understanding the key factors involved in calculating spousal support in a high-asset divorce, people can work towards reaching a fair outcome that addresses the financial needs of both parties involved.