Divorce is a challenging and emotional time for couples. Child support is dynamic and dependent on income, assets, and parenting time. When children are involved, the stakes are even higher for emotional, financial, and physical support. High-asset or high-net divorces come with a new set of potential issues for couples.
Child support can quickly become contentious in divorce cases involving high-asset couples. Because both parents likely have significant resources, it can take time to determine what is fair for the children. In these cases, courts will typically consider several factors to arrive at a child support award that is in the child’s best interests. Couples need to hire an attorney with experience in high-asset divorce to fairly represent their best interests during a divorce.
First, an attorney will consider both represented parents’ income and financial resources. One of the critical aspects of the divorce process is identifying all sources of income for both partners. Multiple financial streams can include typical salaries, single or multiple business revenues, investments, commissions, and bonuses.
In Michigan, child support is generally determined by following the guidelines established by the state Supreme Court. Guidelines for approval are based on the monthly net income of both parents. The court will review child support agreements to ensure that the policies have been applied correctly and that the resulting amount of child support is appropriate. In some cases, however, the court may choose not to use the Guidelines to determine the amount of child support. Instead, it may make a decision based on other factors that it deems relevant. Once all income sources are identified, Michigan child support laws outline how to calculate the required amount of money for each child.
Other factors influencing child support in a high-asset divorce include:
In Michigan, the amount of child support one must pay is based on the state’s child support formula. The amount of child support is generally in proportion to the income of the non-custodial parent. However, there are some circumstances where a court may order a different amount of child support, such as when the non-custodial parent has a high income.
In high-net-worth divorce cases, the court will typically require the non-custodial parent to contribute substantially more funds to child support than in a standard divorce case. Consequently, regardless of whether you have a significant net worth, you should engage with a qualified attorney to prevent paying excessive support payments.
No one enters into a marriage to get divorced, but unfortunately, it happens. If you find yourself in this situation, it’s crucial to have an experienced divorce attorney who can minimize the stress and help you reach an acceptable resolution for all parties involved in a high-asset divorce.
The legal team at Robbins and Licavoli has the experience and knowledge to guide you through this challenging time and work toward a positive outcome. Contact us today to schedule a consultation to discuss your specific needs and how we can help.