Do Courts Award Alimony in High-Net-Worth Divorce Cases?
Alimony is a court-mandated payment made by one spouse to the other during a divorce to help them maintain the standard of living they enjoyed during the marriage. You may be tempted to think that high-net-worth couples don’t have to deal with the issue as both spouses may be financially stable, but that may not always be true.
If the recipient spouse was dependent on the paying spouse during marriage, they may request alimony to help them transition from marriage to singlehood without compromising their lifestyle. Virginia family law attorneys say the payments are often dedicated to a spouse who devoted their time and efforts to care for the family while the other spouse worked full-time.
Determination of alimony accounts for many factors, and while the cases may be complex, high-net-worth divorces may be more intricate to navigate. Unique elements come into play in such divorces, and it is advisable to work with experienced divorce attorneys in Warrenton to protect your rights and interests.
How is Spousal Support in High-Net Worth Divorces Different?
Judges often have the discretion to determine alimony amounts for couples with higher gross incomes. The standard formula for calculating the figures may not apply in these cases, so the law leaves room for exclusion. However, this may create uncertainty, as a judge could use their authority to award any amount.
Nonetheless, a judge must evaluate various factors before deciding how much to award as alimony:
- Career prospects and employability of the recipient
- The length of the marriage
- The current and future earnings of each spouse
- Child custody that impacts a party’s ability to work or be self-sustaining
- Property division
- Physical and mental health concerns
To protect yourself and to fight for what you rightfully deserve, engage the services of Warrenton divorce attorneys with vast experience in high-net-worth divorces. They can negotiate with your ex-spouse to reach an amicable agreement.
Types of Alimony
During negotiations, it’s essential to be aware of the following types of alimony:
- Temporary alimony: It is also known as alimony pendente lite and is awarded during separation while the divorce proceedings are yet to be finalized
- Permanent alimony: It is awarded to the lesser-earning spouse after the divorce is finalized until the demise of either party or remarriage of the recipient
- Rehabilitative alimony: The lesser-earning spouse may be awarded this type of alimony as they work toward finding work outside the home to become self-sufficient
- Reimbursement alimony: This support is awarded to compensate a spouse for the expenses incurred during the marriage.
What Unique Challenges Are Often Present When Determining Alimony in High-Net Worth Divorces?
Most contentions in high-net-worth divorces arise because the couple has significant valuable assets that may be hard to divide. Additionally, the expectations for financial support by the lower-income spouse may complicate the situation. Divorce lawyers in Warrenton highlight the following scenarios in which this may happen:
- One spouse has stayed at home taking care of the family, giving up career advancement
- One spouse has a lower income than the other but is used to a high standard of living facilitated by the other spouse
- Marital misconduct contributed to marital breakdown
- A significant amount of money is involved
- One spouse has a higher gross income, but the marriage lacks sufficient liquid assets to provide for the lower-earning spouse
Business Interest May Complicate Income and Alimony
The situation can become complicated if the paying spouse’s income is a product of a business subject to property division. Business ownership, division, and succession are common issues that make alimony determination complex. Spouses may have stakes in multiple businesses, making the division of assets challenging.
The fate of the businesses involved and the income they generate must be considered during divorce and alimony determination. This can result in intricate negotiations to arrive at a fair decision.
Prenuptial and Postnuptial Agreements
Many high-net-worth couples have prenuptial and postnuptial agreements outlining property division and financial responsibility terms in case of a divorce. The contracts can dramatically affect divorce proceedings and alimony outcomes. Courts carefully scrutinize these agreements to verify they were executed fairly and without coercion, but either party can challenge their validity.
If your spouse challenges the validity of such an agreement, you need the skill of experienced family law attorneys to defend it. The process can further complicate your high-net-worth divorce and alimony determination.
Complex Financial Disclosure
Divorce is emotionally taxing, and a high-net-worth individual may not be willing to lose what they have worked so hard for through alimony payments. So, they may try to hide assets or fail to provide accurate financial disclosure during divorce proceedings. Any discrepancies or omissions may lead to further legal issues and disputes.
If you believe your ex-spouse is engaging in behavior that may jeopardize alimony determination outcomes, talk to experienced divorce lawyers in Warrenton. They know the procedures to uncover hidden assets or financial discrepancies that may affect the court’s decision.
Navigating High-Net-Worth Alimony with the Help of a Skilled Divorce Lawyer
Divorce can be complex and even more challenging when high-net-worth individuals are involved. In such cases, alimony isn’t determined using a formula like in other cases; judges have the discretion to decide how much to award. To fight for a favorable outcome, it would help to work with Warrenton divorce lawyers who are well-versed in high-net-worth divorces.
Ashwell & Ashwell, PLLC, hosts compassionate Virginia family law attorneys who can walk with you when faced with family law issues. We can evaluate your case, discuss your unique needs, and help you create a strong case when fighting for a fair outcome in alimony determination. Call us at 540-386-1277 to schedule a FREE consultation.