Because child support payment is calculated differently in high net divorce cases, the parent who has to offer it will usually have to provide a significantly greater sum of money than one would have to following a regular divorce. Therefore, it is essential to work with a specialized lawyer to avoid paying excessive child support even if you are a high net worth individual.
The laws governing child support vary greatly across the US, making it challenging to decide what the parent who has to offer it has to do following a regular divorce. However, the rule that applies in all cases is that the parent who must pay child support is always the non-custodial one, meaning that they are not in charge of the child’s care as their legal guardian.
Nevertheless, you might wonder how the issue of child support is affected in a high net divorce, which is significantly different than a run-of-the-mill one. Although wealthy people are said to have certain freedoms and privileges that others do not enjoy, this is not the case when it comes to child support.
Perhaps the main difference between a regular divorce and a high net divorce is that following a divorce involving wealthy partners, the non-custodial parent may be required to pay a significantly greater sum of money as child support than the average spouse in a typical divorce. Because the usual rules may not apply, this will not play in favor of parents who are earning tremendous sums of money annually. For this reason, hiring a high-net-worth divorce lawyer, as well as a financial advisor, is a must, as these professionals can help limit these absurd payments and make child support a little more realistic.
It is worthy of note that some states, such as Texas, use a “percentage of income” model in which the incomes of both parents are used to find out a total child support obligation. Accordingly, courts take a flat percentage of the non-custodial parent’s income as the child support payment. That flat percentage depends on the number of children for which the obligor parent is offering support. The guidelines will generally look like this if this system is used:
Now, let us calculate the child support payment in a high net divorce by using the “percentage of income” model that still applies in some states throughout the country. If the non-custodial parent has a substantial income, the entire amount of that parent’s earnings is capped to determine the child support payment. Over the past decade, the caps have increased to account for increases in the cost of living.
In 2019, the total monthly income used to calculate the child support obligation was capped at $9,200. Consequently, if the non-custodial parent earns more than $9,200 per month, the child support obligation will be calculated based on earnings of $9,200 per month, and if the former couple has one child, the obligor parent will have to provide a monthly payment of $1,840. If the spouses have five children or more, the non-custodial parent would have to pay $3,680 as child support.
If you are a high net worth individual going through a divorce, having strong legal assistance and representation is essential, as a lawyer specializing in this area of practice will help you protect your assets and prevent your lifelong earnings from being abused following the separation. The Law Offices of Sean M. Cleary is the ideal law firm for you, as our attorney can help you navigate your divorce with more ease.
Our primary goal is to offer effective and successful legal representation in courts in a way that goes beyond individual interests, including in cases of high net worth divorces. We will strive to deliver only excellent results and help you come out of your high net worth divorce with your assets untouched.