Navigating the complex waters of high-net-worth divorce can be a daunting task. Divorcing couples with liquid assets exceeding $1 million face a unique set of financial challenges, including an equitable distribution of assets that is much more complicated. The more assets and holdings on the family balance sheet, the more there is to divide. As a result, high-net-worth divorce requires the expertise of skilled and experienced attorneys, like those at the Spodek Law Group, who understand the intricacies of dividing assets in a divorce.

Child support, in particular, can be a contentious issue in high-net-worth divorces. New Jersey families with a combined after-tax income of between $8,840 per year and $187,200 per year have child support payments determined by the NJ Child Support Guidelines. But when incomes fall outside of this range, families need to find creative solutions. The court is prohibited from extrapolating the guidelines, which means judges are not supposed to apply them to cases that don’t fit the criteria. Instead, families can negotiate, mediate, or let a judge decide, depending on the circumstances.

When determining child support for couples who fall outside the NJ guidelines, attorneys must examine how money is allocated within the family, including who is currently paying for what. If both parties can’t agree, they may need to hire a forensic accountant to conduct a “lifestyle analysis” to reveal how the family has spent money in the past. However, child support is determined more by lifestyle and income than assets. For example, families with the same total assets could have vastly different child support payments based on their lifestyle and spending habits.

Child Support in High-Net-Worth Divorce: Frequently Asked Questions

How is child support calculated for high-net-worth couples in New Jersey?

In New Jersey, child support payments are determined by the NJ Child Support Guidelines, which are applicable for families with a combined after-tax income of between $8,840 per year and $187,200 per year. However, high-net-worth couples often have incomes that fall outside of this range. In such cases, the guidelines cannot be applied, and families need to find creative solutions. To determine child support in these cases, attorneys at the Spodek Law Group review the Case Information Statements and examine how money is currently being allocated within the family.

Can child support disputes be resolved without going to court?

Yes, child support disputes can be resolved without going to court. Mediation or negotiation is often preferable to litigation as these methods give parents more flexibility, privacy, and control over the decision-making process. The experienced attorneys at Spodek Law Group can guide families through the mediation or negotiation process to find the best possible outcome.

Child Support in High-Net-Worth Divorce: Determining Factors

When it comes to determining child support for high-net-worth couples in New Jersey, lifestyle and income play a more significant role than assets. Families negotiating outside of court will often start with a Guidelines analysis as an unofficial starting point, then adjust the payment amount based on the child’s needs, lifestyle, and current financial dynamic within the family. It is essential to consider the child’s cost of living already provided through room, board, and tuition. Additional factors, such as the child’s job, and the location of the college campus, can also affect the determination of child support payments.

At the Spodek Law Group, our team of experienced attorneys, led by Attorney Todd Spodek, understands the complexities of high-net-worth divorces and child support determinations.

When it comes to a high net worth divorce, the thought of how it may affect your children’s well-being can be overwhelming. As you go through this difficult time, it’s important to understand your rights regarding child support. Our high net worth divorce attorneys at the Spodek Law Group, led by Attorney Todd Spodek, have experience guiding clients through the complexities of seeking child support in a high net worth divorce. Here’s what you need to know:

Can High Net Worth Parents Pursue Child Support?

Parents pursuing a high net worth divorce are still required to seek child support, regardless of their financial status. Seeking child support can help you maintain your children’s current lifestyle and provide them with necessities such as shelter, food, clothing, health insurance, and maintenance for their education. If your children attended private school before the divorce, the court can include their tuition or a portion of it in the monthly child support allowance to ensure their education is not disrupted.

At the Spodek Law Group, we understand the importance of providing the best for your children, and we work hard to ensure that our clients receive the child support they deserve. We take into consideration your unique circumstances to develop a strategy that will work best for your family.

High Net Incomes Mean Higher Award Values

New Jersey’s child support guidelines only apply to parents with a combined net annual income ranging from $8,840 to $187,200. In high net worth divorce cases, parents’ joint income often exceeds the upper limit of these guidelines. As a result, child support payments do not need to follow the guidelines, but instead must meet the state’s minimum support awarding value. This offers the opportunity for parents to determine the monthly payment amount that works best for them, ensuring that their children’s needs are met.

Our experienced attorneys can help you determine a monthly payment amount that reflects your unique financial circumstances while making sure the payment fulfills the minimum support value. After both parents agree on the payment amount, it will need to be approved by the court in a court order. Our team at the Spodek Law Group will guide you through every step of the process and ensure that you receive the child support you deserve.